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Markets rallied higher yesterday lead by the Dow, which broke back above 17000 for the first time in over 3 weeks driven on by positive corporate earnings that eased concerns. This positive sentiment has continued through to this morning as the markets eagerly await tonight’s Fed rate announcement and QE decision. QE is fully expected to be completely halted tonight whilst interest rates are expected to remain at historic lows for a considerable time yet. These are likely to be the driving forces for today’s session.
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The UK’s UK 100 is back above prior resistance this morning as it try’s to gather the momentum to attempt a run back towards 6500. Corporate earnings are in full swing and these could give the UK 100 direction. Support may come at 6409, whilst resistance could be a little way off, around 6500.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Germany’s DAX is trading back at 3 week highs as it eats further into the losses of the last month or so. A sustained break of 9000 suggests that 9300 is now our next target level. The RSI is continuing to rise as the DAX continues its recovery.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The US Dow Jones is leading the recovery after breaking back above 17000 last night for the first time in 3 weeks after recovering nearly 1200 points over the last two weeks! The Dow’s movement will be heavily dominated today by tonight’s Fed decision on interest rates and QE. This could produce some volatile trading conditions and exaggerated moves. The Dow is now trading above its major moving averages as it looks to head back to those highs of last month.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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