Levels to watch: FTSE, DAX and Dow

Deutsche Bank’s fall is weighing on the DAX, but overall it still looks like we are witnessing a consolidation rather than a bearish move for indices.

New York Stock Exchange
Source: Bloomberg

FTSE 100 heading back to all-time highs?

Yesterday FTSE saw the dip towards 7400 met by buying, with the uptrend eking out another day of existence. The peak since 16 March was marked at 7440, so a breakout above here puts us back in all-time high territory.

Even a break through 7400 would not be the end of the world, and could herald a dip to the rising trendline from the February 27 low. Below this we look to the 50-day simple moving average (SMA) around 7276 and then the 7130 area. 

DAX still in an uptrend

An aimless drift continues, but as long as the DAX does not lose 11,927 the uptrend remains intact. Only this would mark a new lower low, so until this happens dips will continue to be bought.

Upside targets still lie around 12,200 and then 12,400. 

Dow close to all-time high, but stuck  

The Dow Jones is barely 1% lower from its all-time high, but so far there seems little sign the bears are gaining any traction. We remain stuck in a consolidation period, with no indication of bearish momentum.

Sellers will need to get a daily close below 20,784, and if this happens a drop to the 50-day SMA (currently 20,422) is possible. Below this the 19,676 area offers potential support. The targets to watch on the upside are 21,000 and then 21,150.

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