FTSE 100, DAX, and Dow are expected to build on gains
FTSE 100, DAX, and Dow all push higher, with US indices breaking into fresh territory. With clear uptrends in play, further upside looks likely from here.
FTSE 100 taking a breather after impressive surge
The FTSE 100 has enjoyed a great start to July, with the index punching higher throughout Monday and Tuesday in particular.
Yesterday was more of a consolidation phase, and that seems to be continuing this morning. We could see some form of retracement take shape from here, yet we would need to see substantial losses to negate this bullish outlook. The shallow pullback on Monday provided us with a great buying opportunity, and a similar buying opportunity could come about if another shallow pullback comes into play.
DAX uptrend remains in play after latest leg higher
The DAX has also been gaining ground significantly over the course of the last month, with the index hitting a ten-month high yesterday.
The continued creation of higher lows is key here, and thus any pullback would be deemed a buying opportunity unless we see the price drop below the 12,482 support level.
Dow starts to consolidate after reaching record highs
The Dow Jones managed to follow the S&P 500 into record territory, with the price rising and settling above that 26,951 level.
The ability to push on from here is going to be key, as we have seen many occasions in the past where record highs have been fleeting and act as a precursor to significant downturns. A break below 26,615 would provide a bearish signal, and until that happens it seems likely we will build on the gains of the past two days.
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