Levels to watch: FTSE 100, DAX and Dow

The DAX is lagging heavily this morning, while the Dow pushes towards the previous highs. With the FTSE 100 awaiting a directional break, the overall picture is somewhat unclear.

FTSE 100 rallies sharply after drop into key support

The FTSE 100 sold off sharply at the start of the day, with the price falling into the 7446 support level.

Given the wider downtrend and recent rally into the 76.4% retracement for the index, a break below 7446 would point towards a potential bearish breakdown coming into play. However, for now we need to see either a break above 7558 or below 7446 to provide direction.

DAX attempts to rebound after trendline sell-off

The DAX sold off sharply from trendline resistance last week, pointing towards a likely continuation of the wider bearish trend.

We are seeing some upside this morning, but for the most part it looks like a short-term bounce before we turn lower again.

Dow pushing higher after recent retracement

The Dow Jones hit the 50% retracement level before turning higher once more, with the break above 26,561 pointing towards the end of the retracement mode and beginning of the next leg higher.

As such, further upside looks likely from here, with a break above 26,783 signalling a continuation of the uptrend.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Find articles by analysts