Levels to watch: FTSE 100 and Dow

The FTSE 100 is drifting lower after hitting a new record high, while recent gains for the Dow has brought it back into a key trendline resistance.

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FTSE 100 back into trendline support

The FTSE 100 has been hitting new record highs this week, with the price fleetingly creating another high this morning. However, we are now seeing the price fall back into trendline support, with buyers likely to step in once more soon enough.

A short-term move lower would be seen as a potential buying opportunity, as long as the price does not fall below 7581.

Dow rallies into trendline resistance

The Dow Jones  has rallied into trendline resistance once again this morning, with the price still trading within a descending triangle formation. The existence of the 70-76.4% retracements, at this trendline, highlight the potential short-term opportunities of a short for the continuation of this pattern.

That being said, the expectation is that we will see the price break higher soon enough, with the recent drift lower looking likely to be a retracement of the wider 24,509-24,875 rally. A break above 24,850 would negate the notion that we could see another short-term move lower into 24,692 support.

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