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.

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