FTSE 100, DAX and Dow Jones ease back after Powell boost
FTSE 100, DAX and Dow enjoy boost from Powell comments, yet US markets certainly look healthier as European markets continue to consolidate.
FTSE 100 showing signs of tentative strength despite early weakness
The FTSE 100 is starting to gradually regain ground, with the very slight creation of higher highs bringing hope that this morning’s weakness is going to be fleeting.
The downside seen through the Friday and Monday has largely given way to consolidation, yet with the price having broken through 7553 resistance, it looks likely that we will see the index turn higher once again from here. A break below 7514 would negate that bullish outlook.
DAX turning lower within consolidation phase
With the price turning lower again, there is a good chance we will continue this downtrend. However, it makes sense to await an hourly close below 12,354 to bring about a bearish continuation signal. Conversely, watch out for a break through 12,450 to signal the beginning of a bullish move for the DAX.
Dow treading water after Powell spike
The Dow Jones enjoyed a big spike yesterday after dovish comments from Powell.
That rally failed to overcome the prior high of 27,034, yet we are now clearly exhibiting higher highs and lows since respecting the 61.8% Fibonacci support level. That means we are likely to see another leg higher before long, with a break below 28,810 required to negate that short-term trend.
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