Levels to watch: FTSE, DAX and Dow

DAX moving back into crucial resistance zone

The DAX is pushing higher following a short-term pullback from trendline resistance. This trendline is going to remain key for the day ahead, with the ability to break through it, and in particular the 12,300 mark, pointing towards a wider resurgence for the pair.

As such, watch these levels for a potential bullish breakout, or short-term reversal. 

Dow continues to move higher

The Dow Jones has been gaining ground amid a potential retracement of the sell-off seen last week. The question here is whether we are seeing a retracement or a bullish reversal.

 For now we have seen a move into the 61.8%, which could extend to the 76.4% level (21,971) should we see a break back through 21,914. Ultimately, while there is a clear downtrend in play over recent weeks, the fact that we have seen the Dow rallying from the 76.4% retracement points towards a possible resurgence from here.

Ultimately, a break up above the 76.4% retracement could be a sign that this period of weakness is over. Until then, the picture is fairly balanced and thus it makes sense to keep an eye out for potential bearish reversal signals from these levels.