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

Weakness is being seen across most indices this morning, with some dismal China data helping bearish sentiment. 

US traders
Source: Bloomberg

FTSE 100 puts bears in charge

The sell-off is gathering pace, with the index back below 7000 and looking to test the rising September trendline. Below 6950 the index would likely head towards the 50-day simple moving average (SMA) at 6868.

Arguably, a new downtrend has established itself, with a rally back towards 7000 hitting this downtrend line and likely providing a fresh selling opportunity. A bigger decline would head towards the 6610 area, the big support level from early August and just below the mid-September low. 

DAX moves lower

The index has moved rapidly below the 50-day SMA (10,547), and now looks to be heading to the key support zone around 10,250, with the 100-day SMA coming into the frame as potential support too. Below this, we would be looking for a push down to the August lows of 10,080. 

S&P 500 hit by losses

The S&P 500 has now firmly broken below the 100-day SMA (2141) and the rising trendline off the February lows. The September low of 2108 is now in sight, with a push below here likely to send the market to the 200-day SMA at 2068.

The price is now oversold intraday, so we may see a bounce materialise towards 2140, the bottom end of the previous range, but this may well just tempt out fresh sellers. 

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