FTSE 100, DAX and Dow look to recover from Monday losses
Indices fell back yesterday, but have managed to hold the overnight lows for the time being.
FTSE 100 struggles to move higher
For the FTSE 100, the sharp drop yesterday reinforces the view that a lower high below 6200 has been created, but for the time being the price is holding above 6090.
A move below this brings Friday’s low at 5990 into view, confirming the ongoing downtrend from 6 July. Alternatively, a rally through 6200 would suggest a more bullish view is emerging.
DAX still in uptrend
Yesterday’s reversal does not alter the picture of an ongoing uptrend for the DAX, but it does suggest some weakness is beginning to emerge.
Gains above 12,800 have proven impossible to sustain this month, so any longer-term rally needs to clear this level. The price is holding above 12,500, an area that has marked support so far this month, so a more bearish view requires a decisive push below this level.
Dow stumbles after early gains
The steep drop yesterday will get much of the attention but the Dow Jones price had established a higher high earlier in the day, reinforcing the more bullish view which has developed since the end of June.
The weakness seems to have been stemmed around 26,000, so if this holds another push higher may begin to emerge. A drop below 26,000 brings 25,400 into play, and then potentially back to 25,000.
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