Levels to watch: FTSE, DAX and Dow

Indices are moving lower once again, although US markets have continued to hold above key support. 

US trader
Source: Bloomberg

FTSE 100 eyes 6150

Losses have slowed markedly over the past two days, and while the index finds itself below rising trendline support, it will take an acceleration of losses to avoid the suggestion that a bottoming process may be taking place.

Downside targets lie around 6025 and then 5988, while any bounce needs to get through 6100 and then move on towards 6150. 

DAX could see selling below 10,550

So long as the index holds above 10,550, it appears that we may have seen an end to the current pullback.

Seasonality would back up this view, with the second-half of December much stronger than the first (ie ‘Santa rally’ territory). Resistance lies in the direction of 10,666 and then the descending trendline around 10,832.

If the price does drop below 10,550 then this will be the signal for fresh selling, that will push the index on towards 10,416 and then 10,333. 

Dow could find support at 17,336

US markets were able to stage a recovery last night, moving off the lows and holding above 17,500 once again.

This suggests a bottom may be in place, with a move higher targeting the 200-hour simple moving average at 17,688, and then head on towards 17,750 and 17,823.

A move through 17,900 would constitute a breakout from the December high, and put the index on course towards a stronger end for the year.

Downside support lies at 17,500, 17,459 and then 17,336. 

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