Levels to watch: FTSE, DAX and Dow

An early blip in indices has been replaced with small gains, although markets are nervous ahead of the Fed meeting. 

Data board
Source: Bloomberg

FTSE 100 pulls back
The FTSE 100 has pulled back from overnight highs, confirming it is the 5950 area that will need to be breached for further upward progress towards 6000 and then 6114. The trendline off the lows from last week was tested yesterday, and we may see this come into play again around 5840.

A move below yesterday’s lows of 5768 would signal the rally is weakening, although it will take a drop through the 5650 area to suggest a new downward leg is in progress. 

DAX falters
Here too the index is faltering after pushing higher yesterday, but we did see it breach the highs of 25 January – around 9850. The rising hourly trendline comes into play just below 9700.

A move through 9900 targets 10,064 and then on towards 10,200, the descending trendline off the two December peaks.

Dow moves up
Having moved back above 16,000 yesterday, the Dow Jones continues to retain its bullish tint. It now needs to push on through 16,200, which would target 16,273 and then 16,460. It would take a firm daily close below 15,800 to suggest a new move down is underway. 

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