Established in 1974
185,800 clients worldwide
Over 15,000 markets

Levels to watch: FTSE, DAX and Dow

The divergence in indices continues, as Europe strides ahead while the UK remains becalmed and US indices remain weak. 

Chart
Source: Bloomberg

FTSE looks to break free of the bulls
A quick move above 6700 in the FTSE 100 is already coming unstuck this morning, proving that this area, plus the 50-day simple moving average at 6724, is still a major obstacle to upward progress. A continued failure to break through towards 6730 implies that the bulls are losing control, with a possible move back to support at 6650 and then on to 6580.

DAX continues to climb
European indices sail higher, seemingly oblivious to the travails of their UK and US cousins. The DAX is now testing the 100-day SMA around 11,570, with a move through here clearing the last obstacle before the July highs near 11,800. A move through here then targets the 12,000 area. If upward momentum slips from this point, then we are looking at a test of the 50-hour SMA (currently 11,436).

Dow still looking vulnerable
US indices continue to look weak, with the Dow Jones failing to hold the 17,600 area yesterday. For now the Monday low around 17,500 continues to bring out the buyers, with a move down still targeting 17,400. 

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.