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Index Focus – 8 Jul - 8 July 2014

Global markets have struggled over the last two trading sessions as investors renew concerns over the strength of global growth. Many investors have been sitting on their hands and watching to see what direction the markets are going to take next, with lots expecting a correction after a run new all-time highs across the US and Germany, and multi-year highs for the UK as well as the Asian markets.    

6700 becomes a very important number for the UK UK 100  as a break below that level could signal a fall back towards mid April’s 6500 level. However, with earnings season around the corner, hope of some strong figures could give support and even a push back up towards all-time highs.

Germany’s DAX has shipped over 200 points since the end of last week, falling from it’s highs as concerns re-emerge over the strength of the global economic recovery. A break below 9740 could see the Dax pulling back towards mid May’s level of 9600. 

With the US Dow Jones being closed last Friday it hasn’t fallen as much as the European index’s and is still in an uptrend. It’s still trading around 17000, a level that might prove significant. We also have US earnings kicking off tonight with bellwether Alcoa due to release their results after the closing bell. A good set of figures from the big US firms could help send the Dow to another new all-time high, however, a weak earnings season could signal a pullback and correction on the Dow.

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Where next?
  1. Will the index rise towards highs of 6882? or;
  2. Will the index fall towards lows of 6500?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 6781, 6747, 6700
  • Potential resistance: 6839, 6861

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

Where next?
  1. Will the index rise towards highs of 10048? or;
  2. Will the index fall towards lows of 9750?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 9819, 9740
  • Potential resistance: 9949, 10002

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

Where next?
  1. Will the index rise towards highs 17075? or;
  2. Will the index fall towards lows of 16350?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 16984, 16952, 16915
  • Potential resistance: 17022, 17054

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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