Levels to watch: FTSE, DAX and Dow

For yet another day, Greek news dominates the headlines. Indices have fallen back slightly, awaiting fresh developments. 

Man looking at data on screen
Source: Bloomberg

From the doom and gloom sentiment seen on social media this morning, you would not realise that the Nikkei 225 closed at its highest level since May 2000 last night.

Last night’s Federal Reserve minutes did not provide the crystal clarity some had hoped for, and although the overall tone could not be construed as hawkish, there wasn’t much for the doves to coo over either. Bond markets seem to have taken the dovish interpretation as their preferred view on the matter, and with equity markets still near record highs this morning’s pullback has yet to imperil the current rally.

FTSE eyes 6920

After yesterday’s brief move above 6900, the FTSE 100 has returned to its normal form – going nowhere fast. Thus the refrain of the past two weeks is still in effect; support at 6800 and resistance above at 6900.

For those looking to go long, we have seen a bounce off the rising trendline from the February 12 low around 6785, with this morning’s dip encountering rising support at 6860. A continuation of this bounce would target the 6920 high from yesterday.

DAX's RSI decline continues

The longer the DAX fails to break 11,000 the more worrying this indecisive trading becomes. The relative strength index continues to decline, so while the price has continued to find buyers and has yet to test even the 20-day moving average, the situation looks unclear at best and not exactly encouraging for buyers.

A daily close above 11,000 is still the catalyst needed to set fresh momentum in train, while even a drop through the 20-DMA will still need to push on beyond the 10,800 zone and then towards support at 10,600.

Dow buyers joined above 17,950 area

The Dow Jones continues to exhibit skittishness around the 18,000 level, as it searches for a meaningful reason to push on, while all the time keeping a close eye on the Greek and Ukrainian situations.

Buyers stepped in this morning above the 17,950 zone, the lows from the overnight session on Monday and Tuesday, and if this level still holds we look for another rest of the 18,050 area seen on Tuesday. Only a firm move below the 200-hour MA cancels out the bullish scenario on this index. 

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CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.