FTSE 100, DAX and Dow all off recent highs

Indices are still higher compared to Monday, but have dropped back from their mid-week highs.

FTSE 100 stuck below 5700

The FTSE 100 tried twice yesterday to breach 5700, but failed, and has now fallen back towards the 50-hour simple moving average (SMA) at 5460.

The area around 5400 has been both support and resistance recently, so if this holds another bounce may develop, but it will need to clear 5700 to provide a further extension of the current bounce. A move back below 5200 negates the bullish view and suggests further downside.

DAX tries to move higher

Here, too, we have been unable to hold all the gains of the past few days, but the DAX is still firmly up compared to the lows of Monday.

For now, the 10,000 area is acting as resistance so a move above here revives the current uptrend, while a drop below 8700 would likely spell more downside for the time being.

Dow drops back after gains

While the Dow has fallen back from the highs of the week, it remains in an uptrend, and only a fall back below 20,000 would start to negate the bullish view.

Indeed, given that it is still up 14% from the lows of Monday, some form of pullback was to be expected. If it can create a higher low around 21,000 then another attempt to push higher may develop.

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