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Levels to watch: FTSE, DAX and Dow

After a strong session in the US last night, European markets are moving higher, albeit in a tentative fashion. 

New York Stock Exchange traders
Source: Bloomberg

FTSE 100 driven by the Fed minutes

Markets rallied after the Federal Reserve minutes but we have seen the FTSE run out of steam at 7533, the previous all-time high.

However, the market is arguably overstretched on the hourly chart, so a pullback towards the 7500 level could see fresh buyers come in. Small dips have been firmly bought this week, so it will be interesting to see if this pattern recurs. Only a push below 7360 would signal a potentially bearish development. 

FTSE chart

DAX faltering but dips are bought

The DAX continues to falter below 12,700, but as with other markets dips have been bought, with drops to 12,600 being the limit on the downside for now.

A push above 12,700 still targets 12,785, and then on to the 12,850 high. 

DAX chart

Dow one step away from the all-time highs

US markets continue to exhibit the greatest strength, despite the Fed’s comments about overvaluation in asset markets. Only 21,171 stands in the way of fresh all-time highs for the Dow Jones.

Conversely, a dip below 20,500 would raise the prospect of a new bearish move, but every drop has been firmly bought. 

Dow Jones chart

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