Levels to watch: FTSE, DAX and Dow

Indices have recovered from yesterday’s wobble, as buyers look to keep October moving higher in order to banish the memory of a difficult September. 

Source: Bloomberg

FTSE 100 eyes 6200

It being non-farms day, the index has already confounded yesterday’s shorts by moving swiftly higher, with the price executing a textbook bounce off the 50-hour SMA yesterday and continuing to move upwards.

As was the case yesterday morning, the 6175 area is likely to provide resistance, and just above this, around 6200, is the rising hourly trendline from the end of last week. An attempt to breach this yesterday failed and prompted the selloff we saw in the afternoon, so it will be interesting to watch this one develop.

Ultimately however, the move is still contained within the broader range for September, so until the index moves through the 50-day SMA at 6291 the bulls have yet to shake off the bearish theme that has held throughout the month.

FTSE 100 chart

DAX sellers await 9300 level

Although it has faltered from the highs seen yesterday the DAX is recovering lost ground this morning. As long as 9500 holds then the bulls may be in the process of building a base that could see the index move back towards resistance at 9900, with a first line target at 9753.

For now dips below 9500 will most likely still bring out some buyers, with only a close through the month low around 9300 really confirming that the sellers are back in control.

DAX chart

Dow bounce unlikely to be maintained

Dow Jones futures already find themselves at a crucial juncture, given that the area around 16,320 has been an area of resistance for around two weeks now.

Until the price gets back above 16,400 it still seems unlikely that this bounce can be maintained. However, dips below 16,000 still bring out buyers, and so the indecisive moves of September look set to continue into the first full week of October. 

Dow Jones chart

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