FTSE 100, DAX and Dow easing back after Trump boost
FTSE 100, DAX, and Dow are starting to weaken once more, following on from a Trump-fuelled rally.
FTSE 100 starting to ease back after Trump bounce
The FTSE 100 managed to rebound off President Trump’s comments that indicated a US-China deal could be 'closer than you think'. However, just like the Chinese markets, we are seeing that initial FTSE 100 optimism fade as time passes.
Coming off the back of a 61.8% retracement, there is a good chance we will continue the bearish breakdown that had taken shape on Tuesday. A wider bearish picture is confirmed with a break below 7213. Meanwhile, a wider bullish picture comes with a rally through 7368.
DAX rally stalls within downtrend
The DAX similarly rallied yesterday evening, with the price rising towards the key 12,296 swing-high. We are seeing those gains fade, with the price turning lower overnight. Given the recent uptrend, there is a good chance we will see further downside to come.
However, a break through 12,296 would negate this and point towards a wider period of upside.
Dow turning lower from trendline resistance
The Dow Jones also seems to have had a limited boost from Trump’s comments, with the rally into trendline resistance now being greeted by a more bearish phase.
The rally looks likely to bring further downside for the day ahead, where a break through 27,026 would be required to negate this bearish outlook.
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