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Levels to watch: FTSE 100, DAX and Dow

Weakness in the European indices is not being matched by their US counterpart, with the Dow expected to push higher still.

DAX
Source: Bloomberg

FTSE 100 turning lower from key resistance

The FTSE 100 has begun to weaken from the 7473 mark this morning, in what could be the beginning of a period of weakness for the index.

The ability, or inability, to break through 7473 was always going to be key for the next step, and so far it looks as though we could see a more bearish short-term picture. As such, further downside seems likely, unless we break above 7473.

DAX falling back after recent gains

The DAX is similarly starting the week on a negative tone, with the failure to follow up on the break through 13,211 subsequently providing a lower low with the move below 13,112.

That signals a likely bearish shift for the short term, with the possibility of moving back towards the 13,007 (61.8%) region. However, given the break above 13,211, this current pullback is seen as a retracement, before we attempt to break higher from this pattern once more.  

Dow continues its ascent

The Dow Jones remains on a remarkably consistent uptrend, following on from the wider 76.4% retracement.

With trendline support coming into play yet again, there is a strong likeliness that we could see another push higher from here. As such, a bullish outlook remains in place, unless the price falls back below 24,313.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.