FTSE looks to break free of the bulls
A quick move above 6700 in the FTSE 100 is already coming unstuck this morning, proving that this area, plus the 50-day simple moving average at 6724, is still a major obstacle to upward progress. A continued failure to break through towards 6730 implies that the bulls are losing control, with a possible move back to support at 6650 and then on to 6580.
DAX continues to climb
European indices sail higher, seemingly oblivious to the travails of their UK and US cousins. The DAX is now testing the 100-day SMA around 11,570, with a move through here clearing the last obstacle before the July highs near 11,800. A move through here then targets the 12,000 area. If upward momentum slips from this point, then we are looking at a test of the 50-hour SMA (currently 11,436).
Dow still looking vulnerable
US indices continue to look weak, with the Dow Jones failing to hold the 17,600 area yesterday. For now the Monday low around 17,500 continues to bring out the buyers, with a move down still targeting 17,400.