FTSE100

FTSE eases from fresh one-month high at 7760, posted today, on already mentioned correction, signaled by overbought daily RSI/slow stochastic. Fresh strength of British pound also contributed on today’s pullback. The action is seen as correction ahead of final attack at key 7291 barrier (16 Jan fresh record high), with initial support at 7217 (yesterday’s low/Fibo 23.6% of 7077/7260 upleg), followed by more significant 7190/7183 supports (Fibo 38.2%/14 Feb low) and 7169 (50% retracement/rising daily Tenkan-sen) which is expected to contain extended dips (according to the wave principles and the length of fourth, corrective wave which should end at this zone). Alternatively, firm break below 7169 support and 7158 (daily Kijun-sen) would signal reversal and lower top at 7260.

Res: 7245; 7260; 7276; 7295
Sup: 7217; 7190; 7169; 7158

DOW JONES

Dow is consolidating under fresh all-time high at 20631, posted yesterday, on uninterrupted strong five-day rally. Extended wave C from 19713 (31 Jan trough) that so far reached levels near its 200% Fibonacci expansion at 20650, may pause upside action in the near-term on strongly overbought daily studies. No firm reversal signal seen for now, but downside remains at risk. Current consolidation is still holding within narrow range and away from initial supports at 20539/00, with deeper dips and possible close below yesterday’s low at 20467, needed to give firmer signal of correction. Strong overall bullish structure suggests further upside after completion of consolidative/corrective phase that should ideally find support at 20380 (Fibo 38.2% of past five days rally).

Res: 20631; 20650; 20700; 20829

Sup: 20539; 20500; 20472; 20380

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