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

Indices have continued to move lower following the completion of topping patterns. With the DAX breaking through a key support level, are we destined for further losses?

US trader
Source: Bloomberg

FTSE breaking lower once more

Yesterday’s sell-off in the FTSE 100 came into some late buying, with early gains pushing into the 50-hour simple moving average. However, this is being unwound in style after the open, with the index selling off once more.

The key here is the ability to break below yesterday's low of 6630. Upon which, we would expect further losses to come. A bearish view remains in place unless we see a break through 6695 resistance. Below 6630, the next key support level to note is 6606.

DAX breaking below historical support level

The DAX has been consolidating above the crucial 10,121 support level overnight. However, we are now seeing the index breaking through that level, providing a good chance that we will see another sharp deterioration.

With that in mind, the recent hourly close below 10,121 has reaffirmed the bearish outlook, with 10,069 and 10,000 the next key support levels. 

S&P 500 looks primed to push lower

The S&P 500 has deteriorated heavily since last week’s failed breakout above 2178. Crucially we have now seen the index break below the support level of 2160, which has this morning formed a new point of resistance.

Given the break and retest of this level, another leg lower seems likely today, with 2147 and 2136 the next key support levels. Conversely, an hourly close above 2160 would bring a more neutral view.

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