Levels to watch: FTSE, DAX and Dow

Indices have bounced strongly so far, taking their cue from a revival of bullish sentiment in the US yesterday.

Data chart board

FTSE 100 to test 6270
The index has recovered its losses from Monday and is now heading back to the area where gains petered out last week, namely 6270. First daily-pivot resistance is to be found at 6210, with a move beyond here heading to 6372.

With stochastics and relative strength index still firmly bullish, the buyers look to be gaining the upper hand again, although they may wish to wait for another pullback intraday before getting long. A move back below 6100 would negate this scenario.

DAX looks to follow suit
A similar picture prevails here for the DAX, with the first aim for bulls being 10,400, with 10,548 being the next stop. Dips will be there to be bought, with the rising hourly trendline at 10,140 being a possible area for fresh long positions.

Again, a move below the daily-pivot at 10,094 would suggest that the upward momentum has come to a halt, with 9900 being immediate support.

Dow traders may be better off to wait
September now appears to be less of a possibility for a rate hike and US indices have reacted accordingly. 16,533 and then 16,663 are the immediate areas to watch for resistance, and with hourly stochastics and RSI both at overextended levels (the former being overbought), then it may pay to wait for a dip back towards 16,300 for a better entry point.  

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