Levels to watch: FTSE, DAX and Dow

DAX heading back towards Fibonacci support

The DAX has been in a retracement phase in April so far, with the lows of the week coming in around the 50% retracement. The fact that yesterday’s low failed to break below that Fibonacci retracement (at 12,118) could be a sign that this will be the bottom of the pullback.

However, with the trendline resistance also respected, there is a chance we could see another move lower. Any such pullback would be seen as positive, as it would set us up for a better opportunity to get long.

There is a chance of further downside from here, with an hourly close below 12,118 pointing towards a move into 12,055 and possibly 12,000. However, such moves are seen in the context of a wider uptrend and, as such, the preference is to look for longs as the market descends. This bullish view is only negated with a break below 11,850.

Dow showing signs of potential weakness

The Dow Jones has been particularly choppy of late, with the market looking relatively difficult to decipher compared with its European counterparts. This is no doubt due to the sheer amount of fundamental and political shifts we have seen this week.

Nevertheless, we have a clear support level which must be broken for further losses to ensue, with 20,515 the downside level to watch. To the upside, a break through 20,756 would paint a more bullish picture.