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Levels to watch: FTSE 100, DAX and Dow

US markets seem to be turning higher, but the same cannot be said of the outlook for eurozone indices.

Wall Street
Source: Bloomberg

FTSE 100 still holding 7300

Once again the 7300 level has held on the FTSE 100, so now we look to see if this rally can be extended, and move past last week’s high at 7450. A break above here would be a positive development, and raise the prospect of a test of 7555.

Sellers will continue to be disappointed unless they can get a daily close below 7294.

FTSE chart

DAX facing more losses

Further losses yesterday saw the DAX move below Friday’s low, although the rising 200-day simple moving average (SMA) at 12,007 is yet to be tested.

As was the case last week, a close above 12,322 is the real signal that a potential turn higher is at hand. So far, that seems unlikely, and we watch to see if 12,007 can be broken, and if so, whether 11,893 can hold as potential support.

DAX chart

Dow targeting 22,100 and 22,200

The Dow Jones tested the area below the 50-day SMA at 21,647 yesterday, but closed above it, and this should be regarded as a positive development. Now 22,100 and then 22,200 come into play as upside targets.

This 2.6% pullback since the most recent all-time high in August has also seen the index hold above the 21,682 high from early July. 

Dow Jones chart

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