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Levels to watch: FTSE 100, DAX and S&P 500

The mid-May pullback seems to have run its course, as indices continue to recover from their lows with a series of higher highs and higher lows.

FTSE 100 builds new uptrend

FTSE 100 has created two higher highs since the rebound began earlier in the week, with higher lows in place as well.

With the recovery now in place, we look for further gains above 7350, and then on to 7400, 7450 and then potentially back to the April high at 7530. A more bearish view would require a move back below 7140.

DAX soars on renewed risk appetite

DAX has leapt higher over the past two days, putting it back above the 12,200 swing-high from last week.

A pullback overnight is hardly surprising, and welcome from a bullish perspective – further gains target 12,400 and 12,450. The bearish view would require a move back below 12,000.

S&P 500 continues its steady gains

The rebound here has seen the S&P 500 move back to the 2890-2900 zone that marked the peak last week.

An overnight pullback provides another potential buying opportunity, targeting 2890 and then on to 2930. A failure to hold the overnight lows around 2865 would target 2830 and then 2800.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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