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Levels to watch: FTSE, DAX and Dow

European and US markets continue to go their own ways, with the bearish FTSE and DAX outlook contrasting with the bullish Dow.

German stock exchange
Source: Bloomberg

FTSE turning lower from trendline resistance  

The FTSE is turning lower from trendline resistance this morning, following a rally within a recent downtrend. Given the continued creation of lower highs and lower lows, this move was likely.

As such, the bearish outlook remains unless we see a break above the 7487 mark.

FTSE chart

DAX rallies into key resistance

The DAX rallied into the 12,310 resistance level yesterday, set within a downtrend seen throughout the past month. That previous support level of 12,310 is now forming new resistance, which crucially takes place below the key swing low of 12,344.

Therefore, a bearish short-term view is in play as long as we do not see a break up above 12,344.

DAX chart

Dow consolidation unlikely to last

The Dow Jones is drifting sideways this morning, following yet another all-time high yesterday. Crucially, we are seeing the price move towards the 50-hour simple moving average (SMA), which has not been breached for a week now.

As such, further upside seems likely today for the creation of a new high. A break back below 21,940 would be needed to negate this bullish short-term view.

Dow Jones chart

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