European markets have been given a boost by further comments from Mario Draghi, who reiterated his conviction that the European Central Bank would do more if it became necessary. Still, the small gains on European bourses are not being replicated in London, as miners once again slump and drag the broader index with them.
FTSE finds support at 6690
The FTSE has so far failed to breach the 200-DMA at 6733, but it has found support for the time being around 6690.
Any close above the 200-DMA targets the 50-DMA at 6760 and would then put the emphasis back on upside in the direction of 6800.
A drop back through yesterday’s lows at 6650 means that we are heading for another test of the 6550 area, representing the lows from early August.
DAX clears 100-DMA
The German index has managed to hold on to its gains from Wednesday, clearing the 100-DMA in the process.
Now it targets 9800 and then 9845, and then on to 10,000 if the bulls can maintain momentum.
A turn lower in the daily MACD is a possible reason for concern, but the daily relative strength index still seems to be holding up well.
Dow holds steady
US futures are holding steady, with the target being last week’s highs of around 17,315. A weakening of bullish momentum shifts the focus back to the 20-DMA at 17,117 and then the 17,000 area.