Levels to watch: FTSE, DAX and Dow

European markets are struggling to make gains so far this morning, while the Dow Jones remains trapped in a narrow range. 

Data reflected in a person's glasses
Source: Bloomberg

FTSE gains capped

We should be watching for any move below 6350 early on today, which would signal that this two-day decline has further to go. The 20-hour SMA (currently 6370) has done well to mark the descending line of resistance, capping any gains, so a close above here on the hourly chart would be a good first step for the bulls. The 6320 and then 6257 levels would be the next targets. Bulls will have their work cut out for them to get the index back on an upward move, but a first area to watch will be a move back above 6400, which would then allow for a possible move back towards 6440 and 6464. 

DAX losses minimized

The 10,700 mark has so far stemmed the losses in this index over the past eighteen hours, so as long as this holds we may see the buyers muster the strength for a move back to 10,800. A drop through 10,700 risks a swift move to 10,534, but the October uptrend still holds, so this will see support come in around 10,450. As yesterday, a daily close above 10,850 still opens the way to the 200-day SMA at 11,088. 

Dow remains rangebound

US markets have barely moved in the past three days, with the Dow bouncing along the 200-day moving average (17,578) and refusing to go lower. The index has not gone higher either, so we wait to see how the current trading range between 17,550 and 17,650 resolves itself. As I noted before, upside moves will target 17,815 and then 18,000, while a resolution to the downside targets 17,447 and then 17,206. 

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