Levels to watch: FTSE, DAX and Dow

Yesterday’s dip was countered by buying, so the overall rally is intact, even if it looks a little overstretched.

Source: Bloomberg

FTSE 100 looks to put the bulls in charge
A dip yesterday was swiftly followed by buying that took the index to the top-end of the range of 6200/6220. So far we are still stuck below 6220, but the fact that the dip was met with buying is encouraging for the bulls.

A real breakout towards 6260 and the 200-day simple moving average is still needed, but the week is looking to end with the bulls in charge. Sellers will have to wait for a close below 6100 at least. 

DAX struggles to make strong gains
Yesterday’s mini sell-off was an echo of the previous Thursday for the index, but once again the dip buyers’ association saved the day. However, gains above 10,000 have proved elusive, which makes life difficult for the bulls.

We could see a more sustained dip towards the rising daily trendline, which would take us as far as 9700 or perhaps 9650. If the index can hold above 9800 today then there is still a possibility that we move back towards 10,000, and then on to 10,121.

Dow continues to rise
With the index now just in positive territory for the year, bulls can pat themselves on the back. The next target is 17,800 and then on to 18,000, if the rally continues.

Selling may take us back towards 17,290 and the rising daily trendline, with further support possible at 17,100. 

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