Levels to watch: FTSE 100, DAX and Dow

Further upside seems likely for indices. Yet, with symmetrical triangle formations in Europe, and record highs in the US, it is the Americans that lead the way.

Source: Bloomberg

FTSE 100 rallies after yesterday’s pullback

The FTSE 100 rally came under pressure yesterday, with the price falling sharply despite early gains. Fortunately we didn’t see the price break below 7371, with the market turning higher once more this morning.

This continues to look like a bullish phase for the FTSE 100, with the creation of higher lows pointing towards a break higher. Given the lower highs, a bullish confirmation signal would come in the eventuality of a move up through 7439.

DAX triangle in play amid potential bullish reversal

The DAX is turning higher once more this morning, with the price trading within a symmetrical triangle formation over the past week.

A bullish bias remains unless we break back below 12,907. However, a confirmation of that view would come with a break up above 13,164. 

Dow pushing towards record highs

The Dow Jones continues to outperform, with the index hitting new highs yesterday.

There is a good chance we are going to see a similar event today, with the 23,640 level within reach. A break back below 23,499 would be required to negate the current bullish trend, with pullbacks perceived as buying opportunities until then. 

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