FTSE attempts break of 6770
Today’s move marks the index's latest attempt to break through 6770, after several days of indecision. However, until we see a close above the 50-day moving average, it cannot be said for certain that the move higher is underway.
A positive sign would be a break through the 200-hour moving average, which at the time of writing the FTSE 100 is trying to do. The daily relative strength index continues to decline, which suggests upward momentum has not yet formed in sufficient quantity to provoke a substantial rally.
DAX sees RSI upturn
The 50-day moving average has come to the rescue of a flailing DAX, allowing it to find a floor from which to rally further. A close above 9884 shifts the outlook to a more positive one, and would signal another move towards 10,000.
The upturn in the daily RSI is a welcome sign and augurs well for any future moves, and while the 20-day moving average is still pointing lower it should be a small matter for the DAX to break through here.
Buyers return to Dow
Pre-market action indicates that the Dow has begun to move higher, after two days of price action that suggested buyers were returning to the fray.
A close above 16,875 would indicate a firm move higher is underway, and until that occurs a cautious stance is probably warranted. Once 16,875 is retaken then it is on to 16,945 and to 17,000. This is still a market that seems to want to go higher, and recent diffidence may be finally coming to an end.