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Levels to watch: FTSE, DAX and Dow

An indecisive day for indices yesterday and it seems to be going the same way this morning.

All trading involves risk. Losses can exceed deposits.
Wall Street
Source: Bloomberg

FTSE 100 shows a shy move higher

A flat day yesterday has been followed by a modest push higher, towards the 7330 level that marked the pre-market peak on Monday. Above this we have 7360 and the downtrend line off the all-time highs.

This has held since March, so the bulls need to break this to spark the kind of breakout on the FTSE that we have seen of late on other indices. A drop back today could find support at 7290, then down to 7260 and then to 7192.

DAX losing upside momentum?

A swift drop on the DAX yesterday cleared out some weak longs, with dip buyers already entering the fray.

However, daily momentum appears to have shifted to the downside for now, so we look to support around 12,600 and then 12,408 in case of a bigger drop. Any rally will target 12,850, the all-time high from last week.

Dow unable to break 21,000

The session finished near the highs of the day, but the Dow Jones continues to have trouble breaking above 21,000. A close above here would likely be followed by a move above 21,171, the record high from March.

The first area to watch for support is 20,846, followed by the 50-day simple moving average (SMA) at 20,791. Beyond this the rising uptrend from the January lows comes into play around 20,560. In this market, even a 2% drop may be the only pullback we see. 

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