FTSE 100, DAX and Dow start to turn lower
FTSE 100, DAX and Dow turn lower, yet a weak pound continues to help FTSE outperformance.
FTSE 100 starts to ease back after sharp surge
The FTSE 100 saw huge gains yesterday, with the decline in the pound helping drive upside for UK-listed stocks.
While we have seen further upside in the early hours, the index is now starting to ease back somewhat. Watch for whether we see a break below the 7684 level to raise expectations of a wider phase of weakness coming into play for the near term. Keep an eye out for whether we see a break below that 7684 level or not as a gauge of whether this rally will continue to play out straight away or not.
DAX breaking lower after shallow recovery
The DAX looked at risk given the shallow nature of its recovery, and so that is how it is playing out, with sharp declines returning to mimic the sell-off from last Thursday.
The break below the 200-hour simple moving average (SMA), coupled with the 12,383 swing low provides the bearish breakdown confirmation signal. As such, further downside looks likely from here, with a rally through 12,465 required to negate this bearish outlook.
Dow rolls over to form intraday double-top
The Dow Jones has turned lower this morning, with the break below 27,212 providing us with an intraday double-top formation.
This points towards downside for the near term, yet we will need to see trendline and horizontal support broken to point towards a wider bearish picture. Ultimately, we still remain within the 27,068-27,402 range, and thus should we see further downside, it would simply look like continue consolidation unless 27,068 is broken.
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