FTSE 100, DAX and Dow weakness unlikely to last
FTSE 100, DAX and Dow roll over after recent gains, yet the bulls are expected to return before long.
FTSE 100 starts to roll over after recent rally
The FTSE 100 has been on the rise over the past fortnight, with the index breaking into a marginal higher high yesterday. That continues the short-term uptrend in play, with the current pullback looking like a retracement before we move higher once again.
A break below 7421 would be required to negate this current uptrend. Until then, the 61.8%-76.4% Fibonacci zone (7470-7451) looks attractive for new bullish positions.
DAX turns lower from record highs
The DAX managed to surge into a record high yesterday, breaking through trendline and horizontal resistance along the way. We are seeing the index come off somewhat this morning, yet this looks like just another pullback within a bullish uptrend.
With that in mind, bullish positions are favoured unless the price breaks below Monday's low of 13,425. Support comes in several forms here, with the previous record highs of 13,540 and 13,601 representing the first notable levels to watch.
Dow Jones retracing after brief move into new highs
The Dow Jones also managed to reach record highs, with the index subsequently moving lower after that fleeting breach through 29,530.
This is likely to be a short-term phenomenon, with a break below 29,210 required to bring about a more bearish outlook for this index. Until then, it is likely we will see another leg higher before long.
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