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

Europe has seen more losses, although for now the situation is calmer than in the US last night, where a full-blown rout took place.

FTSE 100 slumps, edging towards key lows

The limited gains of the past three weeks have been almost entirely given back for the FTSE 100.

The 6900 area may provide support, and then below this 6840, the lows of March and October, come into view. Significant support would then be found around 6640 and then 6520. The index needs to close above 7120 to suggest that a broader rally is underway.

DAX eyes key support around 11,000

The sellers have reasserted control here, pushing the DAX back towards 11,000.

The focus now turns back to 11,000 – the index bounced from 11,030 in October and November, and rising trendline support from 2011 also comes into play around this point. If this area holds then a bounce back towards 11,550 might result. Below 11,000 the 10,820 area comes into view.

S&P 500 thrown back from 2800

Monday’s gains are a distant memory, as the S&P 500 once again falls back from 2800.

Arguably it is now in a range from 2620 back up towards 2820. A fresh push to 2620 seems likely. A breakout from either 2620 or 2820 is needed to suggest that the range has been broken.

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