FTSE 100, DAX and Dow all bounce but still under pressure

Indices rallied from the lows yesterday, but need further gains and intraday higher highs to provide a more bullish view.

FTSE 100 rallies off the lows

The FTSE 100 recovered from yesterday’s lows, but the overnight bounce has stalled at 7121, the 50-hour simple moving average (SMA). The reversal back below 7100 could be a bearish sign, and could suggest a push back towards 7000, the low from mid-August. A move below this heads towards 6750 and then 6550.

If the index can establish a higher low intraday then a more bullish view might emerge, and a move above 7130 would establish a higher high.

DAX unsteady despite late Thursday bounce

Thursday saw the DAX bounce off the 200-day SMA (11,829), and then rally to 12,000. Further gains would head towards 12,165, but the index needs to carve out higher lows and higher highs intraday to recover a more bullish view in the near-term.

On the other hand, it would appear that a close below 11,800 would reinforce a bearish view.

Dow bounces after weak ISM reading

The Dow Jones rallied hard off the lows, moving back off the 200-day SMA (25,843). Further gains head towards 26,470 and then 26,700, with a push above 26,290 creating a higher high.

The index continues to hold the rising trendline from the August low, but a close below 25,840 would be a much more bearish development.

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