Levels to watch: FTSE 100, DAX and Dow

Mixed signal in European and US indices, with the DAX attempting to push higher, while FTSE 100 and Dow remain stuck in their downtrends, for now.

FTSE 100 showing signs of another breakdown

The FTSE 100 has been gaining ground gradually overnight. However, just like the previous occasions, we have seen the price start to turn lower once more.

Given the short-term wedge formation, a sell-off looks likely, and as long as the price remains below 7804, a bearish short-term picture remains in play.

DAX rallying out of downtrend

The DAX is pushing higher this morning, with the price rallying through the 13,269 swing high.

Given that this bullish signal comes above the crucial 13,134 low, an hourly close above there could signal the beginning of a new bullish phase for the DAX. Thus far, we have seen a rejection of that possible break, yet this market will be worth watching to see if the price will challenge it once more.

Dow moving higher after failure to break through low

The Dow Jones has regained ground overnight, following on from another sharp move lower yesterday.

While we have seen the price moving higher, there is a strong chance we could see this index sell-off once more as long as the price remains below 26,331. With the price having rallied into trendline resistance, there are initial signs that this could be the turning point.

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