Levels to watch: FTSE, DAX and Dow

Bulls have run away with indices this week, as there’s no sign of the usual weakness that hits markets in the first week or so of December. 

Traders on NYSE
Source: Bloomberg

FTSE 100 short on bearish sentiment

We are seeing 6940 continue to provide significant resistance on the FTSE, after having acted as a barrier for the past two sessions. A break above here heads towards 7000 and then 7134.

While bearish sentiment is hard to come by this week, a move lower would find support around the 50-day simple moving average (SMA) at 6896, and then down towards 6670.

DAX surge hits 12-month highs

A fresh surge yesterday took the index to its highest level in a year. A drop back below 11,000 could rapidly find support at the rising 2016 trendline, while 11,430 is the next big area of resistance, being the peak from the end of November 2015.

Dow continues to break records

There seems no stopping the index, which has been creating record highs all week. With just days to go until the second half of December, historically when the ‘Santa Rally’ kicks in, weakness will be short-lived.

The 19,000 mark, then 18,850 and finally 18,630, look to be the levels to watch for potential support. 

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