Levels to watch: FTSE 100, DAX and Dow

European and US indices are pushing higher once again, with the Dow leading the way amid weakness in the FTSE 100 and DAX.

FTSE 100 downturn likely to be short-lived

The FTSE 100 sold off sharply on Monday, with the price turning lower from the top end of a month-long range. This range remains in play, with the 7543 level marking the region of support which typically holds.

While we did not quite hit that region on Monday, there is still a chance we have already seen the sum total of the selling. With this range expected to persist, we either look for longs on another move back towards the 7543 mark, or on a break above the 7624 swing high.

Can the DAX continue to push higher?

The DAX has been gaining ground throughout July thus far, yet we are starting to see potential signs of weakness in this story.

The gains we have seen over recent days has failed to see a push through the 12,642 level, which is necessary for the market to continue pushing onwards from here. Should we see a push above 12,642 then the uptrend is likely to continue from here. However, a break below 12,504 would signal a bearish shift for the near term.

Dow pushes onwards amid recent recovery

The Dow Jones has been consistently pushing higher over recent weeks, and this looks likely to continue despite recent consolidation.

To the upside, we need to see a break through 25,106 to confirm a continuation of this trend. Watch for such a move to confirm further upside. A bullish outlook remains in place unless it breaks below 24,884, with a fall below 24,980 providing an initial warning sign that this trend could be coming to an end.

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