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Levels to watch: FTSE 100, DAX and S&P 500

The selling may not be over yet, with the DAX and S&P 500 breaking below key support.

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.
DAX
Source: Bloomberg

FTSE 100 falls into 61.8% retracement

The FTSE 100 has continued its descent, with the index dropping into a wider 61.8% retracement around 7473. That level has been providing clear support overnight, and will dictate the state of play for today.

An hourly close below 7473 would point towards a possible move into 7401 (76.4%). Should we see any bounce from here, we would need to see the price move above 7563 to negate the current short-term downtrend.

DAX dropping below key support

The DAX has sold off sharply over the week, with the price falling below the 76.4% retracement overnight (12,945).

That points towards the possibility of further downside, where we would need to see an hourly close above 13,006 to break out of this bearish picture.

S&P 500 continues to channel lower

The S&P 500 has continued its downturn, with the price channeling lower at a gradual pace. That points towards a possible rebound from trendline support in the near future.

However, unless we see a break above 2835, further downside looks likely from here. It is notable that price has been creating deep (>76.4%) retracements within this channel, and thus any bounce back into trendline resistance could provide a good short-term selling opportunity.

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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.

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