DOW JONES

Dow is holding within narrow consolidation just under psychological 20000 barrier that was cracked yesterday, but was so far unable to clearly break higher and challenge fresh all-time high at 20072, posted on 27 Jan.
Last Friday’s strong acceleration higher generated strong signal that 20072/19715 correction is over, with bullishly aligned daily studies supporting fresh attempts higher.
However, Dow is lacking momentum for final break above 20072 high and resumption of 13-months long bull-leg from 15448 (Jan 2016 trough) towards Fibo projections at 20209 and 20294.
Thick daily Ichimoku cloud continues to underpin, with daily Tenkan-sen/Kijun-sen lines in bullish setup, offering solid supports at 19893 and 19841 respectively and expected to contain corrective dips. Only violation of daily cloud top (currently at 19650) would weaken near-term structure and risk deeper pullback.

Res: 20072; 20100; 20209; 20294
Sup: 19932; 19893; 19841; 19783

FTSE100

FTSE rallies on weaker pound and back above cracked Fibo 38.2% barrier at 7126, after yesterday’s rally failed to close above. The price action is holding for past two days between daily Tenkan-sen and Kijun-sen lines (7087 & 7158 respectively), with fresh strength focusing the upper pivot (daily Kijun-sen at 7158). Daily close above 7126 is seen as minimum requirement for bullish signal, with firm break above 7158 barrier to signal resumption of recovery leg from 7029, where higher base is forming. Bullish near-term studies are supportive, however, signals from daily indicators are still mixed. Failure to clear 7158 pivot would signal extended consolidation, while break below Tenkan-sen support (7087) would generate strong signal of recovery stall and shift near-term focus lower.

Res: 7158; 7189; 7228; 7291

Sup: 7097; 7087; 7061; 7024

 , Market Analysis