Levels to watch: FTSE, DAX and Dow

Indices refuse to move lower, and the apparent breakdown of the previously close correlation between equities and oil suggests we may see more gains. 

Source: Bloomberg

FTSE 100 eyes 6000

The index showed a marked reluctance to go down yesterday, holding comfortably above the 50-hour simple moving average (5855) throughout the session.

Gains above 5940 should be expected if bullish momentum holds, with the real target still being the 50-day SMA at 5960 and then the 6000 area, which will coincide nicely with the top end of the current descending channel.

What has been missing thus far is a real dip, but this may occur if the index drops back towards 5750, providing another potential opportunity to get long ahead of options expiry on Friday. 


DAX could see 9400

For now the rising hourly trendline is holding, and thus we look towards the overnight high at 9246 and then the area around 9300 as targets for the DAX.

Continued gains will put 9400 into focus, the area which marked key support in January. We would need to see a move back below 9000 to really suggest that the bounce has run its course.


Dow could find support at 16,027

The 16,242 level is the first area to watch for a break higher, marking the highs from yesterday’s session.

Any move above here targets 16,511 and then the 50-day SMA at 16,652. A move above the 50-day SMA would mark a significant departure for the index as we have not seen sustained price action above this indicator since the end of November 2015.

Any failure to hold gains today means we look to support around 16,027, and then below this down towards 15,800.


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