Levels to watch: FTSE, DAX and Dow

A pullback could be in the offing after substantial gains earlier this week. However, with the wider bullish trend in play, any such move would likely be short-term in nature.

German stock exchange trader
Source: Bloomberg

FTSE turning lower from Fibonacci resistance

The FTSE is turning lower this morning, following a continued respect of the 76.4% Fibonacci retracement. The wider view shows a continued downtrend despite the fact that we saw such impressive gains earlier in the week.

With that in mind, there is reason to believe we could see further downside come into play, where a break through 7346 would be required to negate that wider downtrend. A break below 7255 would be required to signal that we are likely to see further downside.

DAX could be set for a pullback

The DAX is weakening gradually this morning, following a failed attempt to push through to new all-time highs once more.

Ultimately, what we are looking for is an hourly close below 12,430, which would complete a small intraday double top formation. Should we see that, it would look like we are set for a short-term pullback before we move higher again.

Dow flatlining points towards further upside

Unlike the European markets, we are not seeing any pullback for the Dow Jones yet, with the price flatlining after yesterday’s blockbuster rally.

It looks like we could see another leg higher with minimal pullback. A break back below the 20,988 level could point towards a similar retracement coming into play, but the view for this market remains highly bullish.

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