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FTSE looking towards the 6880 level
With the FTSE 100 through its 50-daily moving average and the relative strength index pointing higher, the overall picture seems to be looking towards another run at the 6880 level.
A slow start this morning has given way to a more energetic mid-morning session, now that the Bank of England minutes are out of the way. The rebound from the 200-DMA is now complete, but there is only a short distance until the index runs back to the highs of May and June.
A close above 6900 would be the most positive sign, while on the downside, a failure to hold above the 50-DMA today or a move back below 6800 would suggest some more indecisive movement ahead.
DAX aims for 50-DMA
The DAX is performing well too, but we need to see a close through 9800 to be assured of the strength of the move. However, the RSI is ticking higher which is an encouraging sign, along with the signs of a move higher in the stochastic indicator as well, taking this signal out of oversold territory.
A close above the 50-DMA would be the best sign, and would leave the index open for a run to 10,000 once again. Only a drop below the 100-DMA and 9600 would send a signal that the move higher has been cancelled out.
Dow could find support at 16,800 level
There is no one-way-bet in markets, but the Dow Jones is seemingly trying to create one. The level 17,150 is only a short distance away, and then we will be in new all-time high territory yet again.
With the 20-DMA at 16,993, it would take a drop below this line to signal short-term weakness. Even then, the 50-DMA and 16,800 should provide ample support.
The real risk to the bull case is a move into overbought levels for the RSI, which would signal another short-term dip.