Levels to watch: FTSE, DAX and Dow

The FTSE has recovered its losses and is moving higher, while US indices continue their ascent. 

Two people's reflection in a chart
Source: Bloomberg

FTSE eking out gains

The battle goes on here, with little gains for either side. Once again, 6350 held as support yesterday, and the continued refusal of the index to go lower suggests that the next move will be to the upside. As a result, 6450 and then 6490 are the key areas to watch in the short term, with a move through 6500 putting the index back above the July lows and paving the way for a move to 6668. Until 6300 breaks it is hard to get particularly bearish on the index.

DAX traders await Draghi speech

The index has yet to move above 11,000 on a meaningful basis, although Mario Draghi’s speech today might help with that. Nonetheless, sellers will still want to wait until the 10,750 level is breached before looking at the index as a potential short, given the strength we have seen. A daily close above 11,000 remains the key ingredient for any further upside, with a target around 11,117 in the first instance, and then on towards the August high at 11,600.

Dow strength persists

US indices refuse to be kept down at present, and yesterday was no exception. Dips back towards 17,790 continue to be seen more as buying opportunities than selling ones, while upside resistance lies around 18,000 and then 18,093 on the short-term chart. For those looking longer term, the scale of the bounce would suggest that the next real target is the all-time high around 18,365.

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.