Levels to watch: FTSE, DAX and Dow

While eurozone indices have stalled thanks to Greek news, US averages are still looking robust. 

A man looking at his computer
Source: Bloomberg

FTSE remains at 6740

For a second day the index is stalled at the 200-day SMA (6740). This is a combination of Greece-related caution and uncertainty ahead of Janet Yellen’s testimony later today. If the index can close above this line then we look to the 6850 area as I noted yesterday; this may be just a dip in the current uptrend, and I would continue to regard oversold stochastics on the hourly chart as entry opportunities. It would take a move back below the 200-hour MA at 6605 to change my view here.

FTSE 100 chart

DAX eyes close above 11,600

So far progress has been lacking this morning, but this comes hard on the heels of a 7% move in the space of a week. With the IMF sticking its oar in regarding the Greek deal, it is hardly surprising to see the index run out of upside momentum. The 11,600 level that caused progress to stall in late June is still proving to be a problem – a daily close above here is needed to confirm that the uptrend is in place. This would then allow the index to target the 11,800 area before moving on to test the April highs. Downside targets lie around the 100-hour SMA at 11,326 and then the 200-hour SMA at 11,104. 

DAX chart

Dow targets 18,200

US indices still look much healthier than their eurozone counterparts, with the Dow Jones pushing through the 18,000 level and putting itself above the 50- and 100-day SMAs (17,986 and 17,987 respectively). Now we look to the June peak around 18,200, with a close above here targeting the 18,400 zone. Bullish stochastics still leave me viewing any intraday dip as a buying opportunity. 

Dow Jones chart

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