FTSE 100, DAX and Dow expected to turn higher once again
FTSE 100, DAX and Dow eases overnight, yet further upside looks likely before long.
Overnight FTSE 100 weakness could be fleeting
The FTSE 100 has drifted lower overnight, following on from a rebound on Tuesday. That rise came off the back of a sharp decline into the notable 7078 support level, signaling the potential for a stronger rebound to come into play.
The sharp rally on Tuesday, coupled with the gradual nature of overnight losses points towards another move higher before long. Watch out for a break through the recent high of 7216 as a bullish signal. Alternatively, a break below 7064 would be required to negate this outlook.
DAX rebound likely to resume
The DAX has similarly drifted lower overnight, following on from a sharp rebound yesterday.
The minimal size of that rate cut means we are likely to see further upside come into play before long. We are starting to see that bullish picture again with prices rising into the 11,667 area. A break through that level would point towards a bullish picture reemerging.
Dow rally starting to ease
The Dow Jones recovery has been slowing after a day of sharp gains yesterday.
This uptrend looks likely to persist once again given the turn higher in the stochastic oscillator. Thus, the short-term bullish picture remains in place unless we see a break below the 25,708 swing low established overnight.
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