FTSE struggling to make progress
A 20 point drop in the FTSE this morning underscores how hard it is for this index to make progress.
The drop below 50 for the RSI on a daily chart shows that buying pressure has run out for the time being, but any selling has to get through the major 6770 hurdle before it turns to anything more serious. Then we would be looking at a test of 6730, the June low.
On the upside, there is still no reason to change the 6880 target, but a close above 6800 is needed before this is back in play.
DAX unable to move higher
The Germany 30 has failed to hold the upward trend from April, and at the time of writing is struggling to hold above 9900. If this level is lost then look for a drop towards the 17 June lows around 9860.
10,030 is the upside target, and we may be witnessing the emergence of a range between 9900 and 10,030. Weaker eurozone data has left the index unable to move higher at present, but patience is still key here while the index consolidates before a fresh move higher.
Dow still targeting 17,000
The 16,900 level continues to prop up the market, having seen a brief dip through this level, but even if further selling materialises then the 200-hour moving average around 16,840 is still a significant hurdle for the shorters.
Even further losses would only indicate a drop towards 16,730 and then 16,700, and it still seems like we will see 17,000 in due course, with Iraq being the only major worry on the horizon.