Levels to watch: FTSE, DAX and Dow

Markets, although still off the highs of the week, look a lot cheerier than they did around 18 hours ago.

Data trader at work
Source: Bloomberg

FTSE 100 may be back on the up
The index has picked itself up and dusted itself down after yesterday’s gyrations. It is now back in the 100-point range from 6100 to 6200 that has dominated throughout March. As a result, so long as 6100 holds we look towards 6200 once again, and then beyond this to 6324.

If the index closes below 6100 then we look to support around Thursday’s lows near 6000, and then on down towards 5850. Overall however, the picture still seems guardedly optimistic. 

FTSE 100 chart

DAX bounce surprises
Those expecting further DAX losses this morning have been given a rude awakening. The index has in fact pushed back above the lows of Tuesday’s session, around 9620, and has also regained the rising hourly trendline.

As a result, the bounce may have further to run, with targets neatly placed around 9800, 9900 and then 10,000. First support is possible around 9600, and then on down towards 9400.

Incidentally, similar conditions prevail on the CAC40 and Estoxx50, so the strong bounce In these indices may well carry over into next week.  

DAX chart

Dow rally looks to continue
If we can see a close above 17,100 then it looks like this rally has much further to run. Indeed, while the sloping downtrend line comes in at 17,300, the sheer strength of this rally would seem to suggest a more sustained push above 17,500, and then on towards 18,000.

Dips, such as we saw yesterday, continue to be furiously bought, and with March seasonality still in play (overwhelmingly bullish over the past few decades) and OpEx looming next week, more gains could well be the theme. 

Dow Jones chart

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