Levels to watch: FTSE, DAX and Dow

A weak session in China has put European markets on the back foot, after a strong rise over the past two days.

Trader looking at dealing screen
Source: Bloomberg

FTSE 100 looks set to continue rally
Two days of gains for the FTSE have been stifled slightly this morning, but we are still within easy distance of 6400. 6345 has proven to be support so far, and if we see a rally through 6380 then the next target becomes 6414.

Further upside targets lie in the direction of 6440 and then 6480. While the rally remains intact for now, a move through 6360 would target 6300 itself, and then clear the way to 6200.

DAX still making gains
The prospect of quantitative easing in December continues to lift eurozone indices. Even a modest drop today would still have seen the DAX gain for two weeks in a row, with eight positive weeks out of the last nine.

The first resistance area to watch is 11,350, with further targets around 11,491 and then 11,614. A drop lower targets support at 11,193 and then 11,103. 

Dow set to be quiet
US markets return for a half day today, so we should not expect too much from this volume-light session. In any event, the area up towards 18,000 continues to provide resistance.

A breakout above here would head towards 18,200 and then on to the all-time high around 18,370. Further declines will push the index back down towards 17,714 and then 17,577. 

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