Levels to watch: FTSE, DAX and Dow

Indices are still attempting to move higher, remaining above the lows of the week. The jury is still out on whether this is a consolidation period or the beginning of a bounce.

Two men looking at data
Source: Bloomberg

FTSE above lows but more work to be done

Although still off the lows for the week, the area towards 6000 is proving problematic for the FTSE 100. The index has tried hard to make gains, but until we do push through 6000 the sellers still have the upper hand. Downside support is to be found in the direction of the Monday lows sub-5800. Any rally above 6100 would be regarded as a firm turnaround in sentiment, and while the index holds above 5900 I remain cautiously optimistic.

FTSE 100 chart

DAX tries for 10,000 again

Eurozone bulls seem to be having a better time of things, with the DAX slowly moving higher. It has yet to clear the 10,000 area on any meaningful basis, but with daily stochastics now bullish there is perhaps a strong argument to be made that a bottom is in place for now. A move through 10,000 would potentially clear the way for a run back towards 10,500, while a drop back towards Monday’s lows might suggest the sellers are back in control. If 9640 is lost, then we look towards 9310.

DAX chart

Dow futures moving higher again

Last night will have frustrated the hope of many that US markets would lead the way in any rally, but if the index can move above 15,860 and push on back to 16,000, then there may still be a chance that the bounce has begun. Daily stochastics are still turning higher, so brave buyers may wish to use this as their starting point, with an initial target around the 16,370 area, and then on to close the Monday gap around 16,500. 

Dow Jones chart

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