Todays FTSE100, S&P500, DAX reports

The Monday open has failed to build on the gains from the end of last week, with the index stuck in the purgatory between the 100-day and 200-day SMAs (roughly 6060 to 6160). Until we have a breakout from one of these levels, traders will be content to play the range. It remains to be seen how long daily stochastics can remain bullish with this rangebound trading. For now, the choppy period looks set to continue.

Dax

Friday’s tentative gains have been wiped out in an instant, but the bears have little to celebrate – until the index manages a close below 9730 their work is only half-done. If it does break below here then the next area to watch would be 9440, the lows of early April. Any rally needs to break above the 50-day SMA (9970), where gains have faltered since the middle of the month.

S&P 500

The index’s constant refusal to move below 2038 will be treated as encouraging for bulls, although they have been unable to hold gains above 2060. A close back above the 50-day SMA at 2061 would be needed to confirm that more upside is on its way. A break below 2038 risks a sudden dive down to 2008, the 200-day SMA, or below this we would look towards 1993 and the 100-day SMA.

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