Levels to watch: FTSE 100, DAX and S&P 500
Indices are trying to bounce after taking losses yesterday, ahead of key US earnings this week.
FTSE 100 edges below 6800 in early trading
The FTSE 100 has continued to fall, recording a new lower low yesterday in its downward move from the 7000 level.
A push below yesterday’s low at 6730 would reinforce the bearish view and bring 6640 and 6520 into play. A rebound to 6810 may find resistance, and above this 6840 and 7000 are the levels to watch.
DAX at vital juncture
Having failed to break 11,300 twice in two weeks, the DAX is heading back towards the 11,050 support zone and rising trendline support from the December lows just below this level.
Below this 10,800 is the zone to watch for support, and then down towards 10,200. Any rally back above 11,250 would bring the 11,300 area into play, with further gains targeting trendline resistance from the June highs, around 11,560.
S&P 500 recovers from sell-off
US markets fell sharply yesterday, but dips towards 2620 for the S&P 500 over the past week have seen buyers emerge.
If this continues to hold then a push back to 2670 is possible, and from here the price will challenge downtrend resistance from the October peak. A close below 2600 is needed to suggest that a bigger retracement is underway.
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