FTSE 100, DAX and Dow expected to continue short-term rebound
FTSE 100, DAX and Dow have started to drift lower following overnight gains, with further upside likely for the short term.
FTSE 100 pauses after rise through resistance
Global markets have continued their recovery, with the FTSE 100 managing to make a tentative move through the 6860 level overnight. This points towards further upside, with the current move lower likely to be a retracement.
However, this whole recovery is expected to be a short-term phenomenon, with the spread of the coronavirus inevitably dragging stocks down again. For now, we are likely to be retracing the sharp sell-off seen last week, and there is still plenty of space to rise into as we continue that move. With that in mind, further upside looks likely over the short term, with a break below the 6750 level required to start bringing a more bearish picture back into play.
DAX gains ease, yet recovery likely to continue
The DAX has also seen a rally through to a new high of the week, with the index easing back this morning. We are yet to see any break below any support level, and thus this pullback is likely to be a precursor to further upside.
A break below the 12,024 level would be required to bring about a more bearish picture for the DAX.
Dow Jones pullback likely to resolve higher
The Dow saw a sharp rise yesterday, with the index gaining over 1100 points throughout the session. However, with the index currently drifting lower, we look to be in a retracement phase.
As such, a bullish outlook remains for the short term, with a break below 26,283 required to bring about a more bearish picture. Much like the other indices, this current bullish phase is deemed a precursor to further sharp market declines if the virus begins to make a material impact on major cities and businesses.
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