FTSE, DAX and Dow push higher, with recovery phase remaining in play

FTSE 100 continues to grind higher, but can it continue?

The FTSE 100 has continued its move higher despite yesterday’s sharp pullback that took price towards the 7455 lows established last week.

Despite that, we have seen price continue to push upwards, taking us back in towards the two-month highs seen on Friday. We have seen a bout of UK employment data released this morning, although the market reaction has been muted as unemployment remained steady and wages stayed elevated.

The current uptrend does provide the basis for a possible reversal lower at some point given the impending economic strife and proximity to record highs.

A break back below the 7455 support level would be needed to bring a bearish outlook into play. Until then, there is still a good chance we continue to grind higher.

DAX pushes higher, with recovery phase continuing apace

The DAX has been pushing higher over the course of the past month, with the index rising into a fresh two-month high on Friday.

Despite subsequent volatility, we have seen price push up towards that recent high in a bid to continue the recovery phase. A break back below the 13631 and 13454 support levels would signal the potential beginning of a bearish reversal phase for the index.

However, until that occurs, the ongoing uptrend does still remain intact.

The Dow on the rise as inflation lessens tightening fears

The Dow remains an outperformer, as traders continue to weigh up the impact the recent decline in US inflation could have upon monetary policy.

While there is a chance that inflation will simply turn higher once again next month, for now we are looking at a potential period where the Federal Reserve (Fed) could slow their upward rate path as long as CPI turns lower.

For the Dow, we have seen prices rise into a three-month high, as the uptrend seen over the past two months continues apace. A break back below the 33517 level would provide the initial signal of a downside move for the index.

However, we would ultimately require a break back below the 32381 swing-low to bring a wider reversal into play.