Levels to watch: FTSE 100, DAX and Dow

Weakness in the European indices is not being matched by their US counterpart, with the Dow expected to push higher still.

Source: Bloomberg

FTSE 100 turning lower from key resistance

The FTSE 100 has begun to weaken from the 7473 mark this morning, in what could be the beginning of a period of weakness for the index.

The ability, or inability, to break through 7473 was always going to be key for the next step, and so far it looks as though we could see a more bearish short-term picture. As such, further downside seems likely, unless we break above 7473.

DAX falling back after recent gains

The DAX is similarly starting the week on a negative tone, with the failure to follow up on the break through 13,211 subsequently providing a lower low with the move below 13,112.

That signals a likely bearish shift for the short term, with the possibility of moving back towards the 13,007 (61.8%) region. However, given the break above 13,211, this current pullback is seen as a retracement, before we attempt to break higher from this pattern once more.  

Dow continues its ascent

The Dow Jones remains on a remarkably consistent uptrend, following on from the wider 76.4% retracement.

With trendline support coming into play yet again, there is a strong likeliness that we could see another push higher from here. As such, a bullish outlook remains in place, unless the price falls back below 24,313.

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