You might have been forgiven for expecting a market drop this morning, given that there was no agreement from eurozone finance ministers on the Greek situation. However it seems hope springs eternal, with the next meeting on Monday offering another point at which an agreement can be struck.
Sweden has also cut rates to negative, joining the central bank easing party, while signs of a potential ceasefire agreement have reassured worried markets about the conflict in east Ukraine.
FTSE's 100-point range drops to 60
The index continues to find support around 6780, close to the 20-day moving average, combined with buyers entering on any dip towards 6800.
However until we have a clear breakout to the upside beyond 6900 it seems hard to imagine a sustained rally in this index.
Over the last three days the 100-point range of February has narrowed to a 60 point range, with gains running into resistance around 6860 even as buyers hold up the 6800 end.
DAX finds support at 10,600
This morning’s action sees the DAX heading back to 10,900, targeting the 11,000 peak. The index has broken above the hourly trendline that capped gains since 3 February, moving back above the 200-hour MA. Short-term targets on the upside lie around 10,900 and then 10,970.
Any move lower would first come into contact with support at 10,700, where buyers entered during the course of yesterday’s session, and then 10,600 below it, the major support zone for the last two weeks.
Dow could drop to 17,400
The move higher in cash futures means the Dow Jones is once again attempting to build towards the all-time high. A daily close above 17,900 would set this up nicely.
A failure to hold above 17,900 would lead to another drop back in the direction of the 50-DMA, and then towards the 17,400 zone.