The DAX is flirting with 10,000 again, with moves either side of this line illustrating the uncertainty that reigns ahead of Mario Draghi’s appearance. A first-time close above 17,900 on the Dow Jones, however, shows that this is a market that is still not in a mood to go lower.
FTSE eyes 6540
The 6710 level is holding as support for now, as was the case yesterday, although the broad retreat from 6750 is still in progress. Until the index breaches this level the downside scenario would seem to hold sway.
First support is possible around the 6680 and then 6650 levels, with a bigger move lower taking us in the direction of 6540.
DAX awaits ECB news
Although every move today is dependent on what the ECB does, it seems the DAX is becoming increasingly comfortable with staying above 10,000. The first target remains the summer high around 10,050, with a breakout from here signaling further gains are in the offing.
Meanwhile 9900 is the first stop on the downside should the situation worsen, with a more extended move taking us back towards 9700.
Dow could find support at 17,830
The move through 17,900 is an indication that a fresh breakout is underway on the Dow, after several days of consolidation.
A note of caution is being seen in the hourly overbought reading, but even a sustained pullback would likely find support in the direction of 17,880 and then 17,830. An hourly trendline from Monday’s lows seems to be guiding the market higher, with an 18,000 figure looking increasingly likely towards the end of the year.