FTSE 100, DAX and Dow spike higher on trade breakthrough

FTSE 100, DAX and Dow surge past resistance following breakthrough for conservatives and Trump.

FTSE 100 rising back into 76.4% resistance

The FTSE 100 has seen a volatile session overnight, despite the clarity initially provided by the exit poll.

The FTSE 100 has been in the middle of a tug of war between the positive impact of the US-China breakthrough and the negative effect of a surge in the pound. With the FTSE 100 attempting to push through the 76.4% Fibonacci resistance, it looks likely we will see further upside from here. To the upside, the next major resistance level comes in at the 7446.

DAX breaks into 22-month high

The DAX has surged off news of a US-China breakthrough, with the index hitting a new 22-month high this morning.

That points towards further upside to come, with the bullish wider trend in play over the past four months coming back to the fore after a November pullback. As such, further upside looks likely, with any retracement likely to be temporary unless we see a decline below 13,104.

Dow surges into record highs

The Dow Jones has managed to surge through the 28,201 resistance level last night, with optimism over an apparent US-China breakthrough driving the index sharply higher yesterday.

Those gains are likely to persist if we do not see anything that signals a breakdown in that agreement. With the price currently consolidating around trendline resistance, a push through 28,268 would likely bring about another surge for the index. Only a break below 27,795 would negate this bullish outlook.

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