Levels to watch: FTSE 100, DAX and Dow

Weakness overnight in response to the FOMC minutes appears to have been a temporary move, with the indices turning higher once more.

DAX figure
Source: Bloomberg

FTSE 100 consolidates within recent uptrend

The FTSE 100 has been consolidating overnight, coming off the back of the Federal Open Market Committee (FOMC) fueled sell-off yesterday.

Given the recent uptrend, it looks likely that we will see further gains come into play today. Keep an eye out for trendline resistance up ahead. However, unless we see a break back below 7354, further upside seems likely.

DAX rallying from Fibonacci support

The DAX is moving higher from the 61.8% retracement this morning, coming off the back of a sell-off yesterday evening. With the price having remained above the key 12,155 support level, the uptrend remains intact.

As such, another leg higher seems likely from here, with a break above 12,300 pointing towards a move to the 12,338 resistance level. A break back below 12,155 would bring that bullish outlook into question.

Dow turning higher after FOMC fueled weakness

The Dow Jones is similarly turning higher this morning, with overnight weakness bringing a move back into the 76.4% retracement.

Since bottoming out on Friday, the index has been trending higher, with continued higher highs and higher lows expected. A bullish outlook remains in place unless we break back below 21,976.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

Find an article

Find articles by writer