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Levels to watch: FTSE, DAX and Dow

Indices held their ground yesterday, and look set to push higher again today, with both the FTSE and the Dow within easy distance of all-time highs. 

Wall Street
Source: Bloomberg

FTSE 100 – can it go to 7540?

A mixed session yesterday saw the FTSE hover around 7500. There was little momentum in either direction, so we wait to see if a push above 7520 can bring 7540 into play.

Conversely, the bears will need to get the price below the 7385 low from last week to signal more selling is on the way.

FTSE chart

DAX halted by the strong euro

Here too it was an uninspiring day yesterday, with euro strength making life difficult for eurozone indices. The DAX tried to push above 12,660, but ran out of steam, so this is the first target for the bulls today.

A move back above this level leaves the index with 12,785 and then 12,850 as upside targets. A loss of 12,490, the low of last week, would represent a significant development and signal that further losses are on the way.

DAX chart

Dow to reach all-time highs soon?

US markets have found their form once again, with the Dow Jones having climbed 400 points since the low. Areas of potential resistance are 21,023 and then 21,171.

A move back below 20,846 would be the first sign that bullish momentum has faded. Given the strength seen here in recent days it would not be surprising to see fresh all-time highs within a short space of time.

Dow Jones chart

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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.