Levels to watch: FTSE, DAX and Dow

UK markets are moving strongly ahead, but others have failed to hold their highs ahead of key jobs data from the US. 

Trader watching screens
Source: Bloomberg

FTSE enjoys overnight surge
Having surged overnight, the index has now settled around 7000, but still remains well up from the sub-6850 levels we witnessed yesterday. 7050 is clearly the level to beat, being resistance this morning and then earlier in the week on 6/7 May. A close above 7000 would allow the index to build a base from which to challenge 7050 and then 7100. A failure to hold around its current level, though, would raise the prospect of another dip towards the rising December trendline, which was so instrumental yesterday in bringing out the buyers.

DAX remains in its descending channel
An attempt by the DAX to break the 11,520 mark and the 200-hour simple moving average (SMA) has so far failed this morning. The index remains in its descending channel, despite the strong bounce from the sub-11,200 level we saw yesterday. If it can clear 11,520, the peak from 6 May at 11,700 is in prospect, but at present it seems that the bounce has run its course and we are looking at a possible move to the 11,300 area. A bullish not for profit (NFP) update could change this and give the longs another chance, but it looks like the gains are done for the week.

Dow Jones fails to break 18,000
With NFPs in prospect today there is still all to play for. An attempt by the Dow Jones to break 18,000 on the futures in the early morning has so far been defeated, as it was on 7 May. This is the first resistance area to watch, followed on by the 18,100/18,150 region of the past two weeks. Dips today could see buyers at 17,900, or if this is broken then 17,800, which remains within the trading range of recent weeks.

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