Levels to watch: FTSE 100, DAX and Dow

Yesterday’s US inflation fueled sell-off has proved short-lived, with the price rallying sharply in the aftermath. With key resistance levels up ahead, the indices are building an increasingly bullish story.

Despite US inflation FTSE 100 continues to gain

The FTSE 100 is continuing its ascent today, with the sell-off seen around yesterday’s rise in US inflation proving short-lived.

That is an encouraging sign, with a break above 7312 required to confirm a bullish outlook. For now, the index is challenging trendline resistance, where a break to the upside could spark a surge towards 7280. Ultimately, the directional bias will be clearer with a break above 7312 or below 7144.

After recent bounce DAX turns lower

The DAX is showing signs of short-term weakness, following yesterday’s sharp rise.

This could set us onto a short-term pullback phase. However, with the price breaking above 12,380, it seems like we are moving into a more bullish phase, with the 12,652 level forming the next resistance level of note.

Amid short-term uptrend Dow continues to climb

The Dow Jones continues to move higher this morning, as it builds on yesterday’s failed break lower.

The push into a new short-term higher high points towards further upside despite yesterday’s fleeting sell-off. Thus, a bullish outlook is in play unless we fall back below 24,313. The next key resistance level of note is at 25,298. 

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