Levels to watch: FTSE, DAX and Dow

An action-packed period for global markets will make life interesting for indices. For now, bullish momentum is still lacking.

Trader looking at data screens
Source: Bloomberg

FTSE 100 in the balance
After Monday’s defence of the 6240 area, and yesterday’s tight session, we wait to see which side has the strength to establish a direction. With the price still stuck below 6340 it looks like the approach is still to sell rallies as they appear, but with so much data and news crammed into the next 48 hours it may be the index continues to drift.

A close below 6240 would suggest further downside is on its way, with targets around 6170 and then 6070. Any bounce has to clear 6340, but also then go on to establish a new high above 6420 to confirm a bullish trend.

DAX continues to drift
The drift lower since the 21 April peak suggests weakness will continue to dominate here. The previous two sessions have seen 10,200 act as support, but a break below here suggests a move to 10,100 and then 9900, the low of 18 April.

It would need a move back above 10,400 in the first instance to cancel out a bearish move, with the index needing to clear 10,500 to confirm a fresh upward move. 

Dow Jones appears volatile
US markets have to contend with the Federal Reserve decision this evening, and thus we may see significant volatility in the coming session. However, the failure to push on last night indicated bullish momentum is still lacking.

A move back above 18,100 would suggest the consolidation of recent sessions has run its course. The area down towards 17,850 has seen buyers come back, stemming the downside, so we would need to see a drop through this area to confirm more bearish momentum.

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