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Levels to watch: FTSE, DAX and S&P 500

Markets look to be following through on Friday’s bearish momentum, although at least in London, clear support is holding for now.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
US trader on stock exchange
Source: Bloomberg

FTSE 100 in the balance
There is a sense of a trapdoor moment about the FTSE 100 today, with the index hovering above 6050 this morning. This is a key support area, which prevented further downside throughout May and even in late March/early April.

If this goes then the risk is that we see a swift move to 5900 or even down towards 5600. Intraday oversold conditions might lead to a bounce, but anything below 6200 should still be seen as a selling opportunity. 

DAX looking weak
Having dropped through 9730 this morning, the index looks weak, and further downside moves would push it on towards the April low at 9500, and then on down towards 9000 itself.

If the index can clamber back above 9800, bulls may be in with a chance, but it will need solid price action back above 10,000 to reverse the outlook at present. 

S&P 500 in the hands of the bulls
At the beginning of the month, 2090 held back S&P 500 downside, and it is up to bulls to defend this level now, lest it give way and raise the prospect of a move back towards 2050 (with some potential support around the 50-day simple moving average at 2072).

Below 2050 the next area to watch would be around 2037. A bounce from here would need to clear 2100 and then the high seen last week around 2120 to suggest a new left higher is underway. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.