DAX hits three-month high
The DAX has rallied sharply overnight following the FOMC minutes, with the index hitting a new three-month high. Given the current move above 11,058, any pullback would likely find support on that level once more. The bullish trend is therefore expected and with very few major levels of resistance, the only level currently in focus is 11,166. However, given the size of the overnight rally, there is a good chance that we will see another retracement lower before pushing higher again. At which point 11,058 and 11,000 are the two main support levels.
Dow punches higher
The Dow Jones has been rising sharply overnight, with the price breaking through 17,763 resistance this morning. Ultimately while we are clearly within an uptrend, there is a clear possibility of a short-term retracement, given that we are so extended on both MACD and stochastic indicators. Any such retracement would look towards 17,763 and 17,686 as the near-term support levels. As this uptrend continues, we approach the major peak of 17,978, with nearer-term resistance levels at 17,844 and 17,924.