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FTSE back to 7000 again
Yesterday’s bounce has taken the FTSE 100 back to 7000, which leads to a possible repeat of the whipsaw trading between 7000 and 7100. Momentum for the bulls has stalled once the price pushes on to 7050, so we will see if the new week can change anything on this front.
As has been the case over the past few months, the index has found strong buying support whenever a test of the rising December trendline is seen. Thus rising support is now available around 6920.
DAX ends the week as it started
The week ends very much as it began for the DAX, at the top end of the descending channel. It seems too simplistic to suggest that we will see a repeat of the past five days, with the potential for a move down taking the index all the way to the rising trendline from the October lows, around 11,090.
Some support might be possible at 11,400, or at 11,200. We would need to see a strong rally through 11,700 and then on to the 50-day simple moving average (SMA) at 11,835, to break the channel for good.
Dow within reach of all-time highs
This market finds itself within touching distance of new all-time highs, which would only take a small move to reach. Should the index breach 18,300 then we could see an end to the rangebound trading that dominated in April and early May.
In this case, the ceiling that provided resistance at the end of 2014 now enters the fray around the 18,600 area (around 2% away). An inability to hold above 18,200 today suggests a move back to 18,040 and the 50-day SMA.