Levels to watch: FTSE, DAX and Dow

Record-highs in the US are likely to drag other markets higher, with the FTSE 100 moving above 6800 yet again, while European markets bounce from Monday’s lows.

NYSE trader
Source: Bloomberg

FTSE 100 seeks to stay above 6800

The move above 6800 finally looks to be taking hold. If the price can close above the 100-day simple moving average (SMA) - 6830 - then a move to 6900 and higher is possible.

If we see yet another failure to rally, the index could drop towards 6612 and then the 200-day SMA (currently 6508). 

DAX targets 11,000

We have seen the index rally off the lows of Monday’s session, but now it needs to break 10,800. With other markets around the world looking strong, we could see the DAX dragged through this key level, which would open the way to 11,000 and higher.

Yesterday’s session showed there is clear buying power around 10,600, so bears need a strong close below this level (and ideally below the 50-day SMA at 10,565) to get a downward move going. 

Dow setting record-highs

The pre-Thanksgiving squeeze goes on, with a new record-high for the index. Ahead of the long weekend we may see a continued grind higher, even given the overbought conditions prevailing here.

Support is possible at 18,978 and then 18,744, with dip buying still being a prudent approach here. 

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