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FTSE drops back
The drop back below 6720 was rapid, although buyers were able to bring the FTSE back above 6670. At least the index has managed to break out of the 60 point range seen for the rest of the week.
The drop below the 200-hour moving average has taken the index into oversold territory on the hourly chart, but 6640 has yet to be tested as support. A daily close back below the 200-DMA would take the bullish shine off the FTSE, even if 6640/6650 is still going to provide support in any sustained move lower.
DAX rally eases
The non-stop rally in the DAX finally eased off this morning, but the index has shown no desire to go below 9890. Resistance is still being offered at 10,000, with a further target around the July highs at 10,040.
The index was briefly oversold this morning, the first such occurrence in a number of days. A move below 9890 would take us towards 9850 and then further support at 9770.
Dow moves back through 17,800
Although the Dow Jones fell back through 17,800 early on, it has moved above this level once again, putting it back into the 60-point trading range that has prevailed since Monday.
Last Friday’s high just below 17,900 remains the upside target, while for now the 200-hour MA at 17,770 is providing support, with buyers using the oversold reading on the hourly chart as another entry point.