Levels to watch: FTSE, DAX and Dow

European markets show signs of weakening, following on from an incredible week of volatility. However, US markets continue to outperform, with the Dow reaching new all-time highs.

US trader on NYSE stock exchange
Source: Bloomberg

FTSE consolidates after a choppy 48 hours

The FTSE is settling down this morning following on a wild rollercoaster ride instigated on Wednesday. The next move will likely be prompted by the breakout from the current sideways consolidation, with an hourly close below 6798 bringing a more bearish view. Given the bearish move into this current consolidation, another leg lower seems likely, yet we await the breakout.

Will DAX weaken from key resistance?

The DAX has failed to break through the crucial 10,807 resistance level this week, with the index instead starting to show signs of weakness. An hourly close below 10,628 would be a worrying sign, with a break below 10,577 providing an even stronger sell signal. Essentially a breakout of the 10,574-10,807 range should provide us with a clue of where the next big move is.

Dow outperforms European markets

The Dow Jones has been outperforming its European counterparts, with a clear uptrend in place following the creation of new all-time highs. This is expected to continue as long as we create new highs and higher lows. As such, as long as price does not break back below 18,630 then further upside seems the order of the day.

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