FTSE 100, DAX and Dow weakness unlikely to last

FTSE 100, DAX and Dow roll over after recent gains, yet the bulls are expected to return before long.

FTSE 100 starts to roll over after recent rally

The FTSE 100 has been on the rise over the past fortnight, with the index breaking into a marginal higher high yesterday. That continues the short-term uptrend in play, with the current pullback looking like a retracement before we move higher once again.

A break below 7421 would be required to negate this current uptrend. Until then, the 61.8%-76.4% Fibonacci zone (7470-7451) looks attractive for new bullish positions.

DAX turns lower from record highs

The DAX managed to surge into a record high yesterday, breaking through trendline and horizontal resistance along the way. We are seeing the index come off somewhat this morning, yet this looks like just another pullback within a bullish uptrend.

With that in mind, bullish positions are favoured unless the price breaks below Monday's low of 13,425. Support comes in several forms here, with the previous record highs of 13,540 and 13,601 representing the first notable levels to watch.

Dow Jones retracing after brief move into new highs

The Dow Jones also managed to reach record highs, with the index subsequently moving lower after that fleeting breach through 29,530.

This is likely to be a short-term phenomenon, with a break below 29,210 required to bring about a more bearish outlook for this index. Until then, it is likely we will see another leg higher before long.

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.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.