Levels to watch: FTSE, DAX and Dow

With the election upon us, it could be a quieter day for markets. However, yesterday’s big bounce has put markets on a bullish footing, which is holding for now. 

Data on screen
Source: Bloomberg

FTSE 100 eyes early October high

Yesterday’s bounce is consolidating above 6800, and while we may see some caution, as long as the price holds above 6700 the move higher looks assured (barring a surprise in the US election).

Upside targets for the FTSE 100 would be 6895, the 50-day simple moving average (SMA), and then on to 7134 and the early October high. 

DAX could test 50-hour SMA

Here too the bounce looks to be preparing for another push higher, although a test of the 50-hour SMA towards 10,360 could bring in fresh buyers.

The next goal is for the index to get back above the rising trendline from late June, above 10,640. This would then clear the way for another test of 10,800.

Dow Jones could see 18,400

The gap up has put the index back inside the range that prevailed in September and October, in the 18,000 to 18,400 area.

With the hourly chart still indicating oversold momentum indicators, it might be hard for the price to push on. But, so long as 18,000 holds we should expect additional upside, as the US market gears up for the pre-Thanksgiving period when bullishness tends to prevail. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.