FTSE continues to underperform
The FTSE’s recent underperformance versus other indices continues this morning, although the lows from Monday’s session are holding for now.
We are still holding on to the rising trend from April, but only just, and the consistent break below the 50-day moving average should concern the longs.
On an hourly chart the 6750 level remains support, but a break here would mean a push back towards 6724. Upside moves should remain capped by 6780 for the time being.
DAX unable to hold 9970
The German index still looks more positive in most timeframes, but it has not been able to hold the session highs around 9970.
Here, the rising trend from April is intact, and looking far more secure than in the FTSE’s case. So long as the upward support line is held then a retest of 10,000 is the default scenario, particularly if the euro continues to weaken, a situation that will benefit German exporters and give a fundamental lift to the DAX.
Dow ready to move higher
Having found its floor yesterday, the Dow Jones is steadily moving upwards again, although with little enthusiasm given the Federal Open Market Committee meeting on Wednesday. If the index can hold 16,800 then on an hourly chart we are then looking at an attempt to push back above the 200-hour moving average, currently around 16,840.
After yesterday’s tussle, it seems the market is ready to move higher again, with 17,000 once again back in focus if the highs of June around 16,940 can be breached.