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Levels to watch: FTSE, DAX and Dow

Markets have pushed higher despite some pre-Fed jitters.

Data
Source: Bloomberg

FTSE 100 looks for further gains

The FTSE 100 was one of the standout gainers of yesterday’s session, rising strongly and pushing above its 50-day simple moving average (currently 6778).

Further gains could see it push back in the direction of 6860 and 6900, although yesterday’s high around 6818 could provide some resistance.

A bigger dip is to be expected, so we may see support enter the fray around 6770, but it would take a move below 6730 to really impair the current uptrend off the lows of the month.

FTSE 100 chart

DAX struggles to move up

Although the day finished off its highs, most of the gains have been held overnight. The next push needs to take the index through the 50-day simple moving average (10,425) and above the key resistance zone of 10,428.

This would then raise the prospect of a steady push back to the August highs around 10,800, as strong seasonality kicks in for the index, which has historically posted very healthy returns in the final quarter of the year (average return over 6%).

DAX chart

Dow continues uptrend

It was an odd session for the US, with a healthy start giving way to clear pre-Federal Reserve nerves, a state of affairs that may well continue today for the index.

Nonetheless, the rising uptrend off the February lows still holds, and once the Fed is out of the way dip-buyers may return in earnest.

Patience, therefore, is probably the watchword here. On 15 and 19 September the 18,250 area acted as resistance, so this is the first level to watch, while over the past two sessions 18,100 has held as support. Below this, the rising trendline comes into play at 18,070. 

Dow chart

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