Levels to watch: FTSE, DAX and Dow

Heavy selling yesterday saw indices breach a number of key levels, with another lower open this morning.

A man on the phone looking at data
Source: Bloomberg

FTSE slump resumes after close below 6000

Yesterday witnessed a FTSE close below 6000 for the first time in a month, firmly ending the limping upward move that began back in late August. So far buyers have stepped in to defend the 5870 area, but the index needs a close back above 6000 to even suggest that the slump is over. With the RSI still steadily declining on the daily chart, rallies are there to be sold. The 5800 mark still looks to be the destination at present.

FTSE chart

DAX could see bigger move lower

Having bounced from overnight lows, the DAX is aiming to move back above yesterday’s close at 9570 and then head towards 9722. Downside support is found around 9426 and then 9261. With the hourly chart still looking distinctly bearish, a move through the overnight low at 9470 could well set off a bigger move downward.

DAX chart

Dow RSI continues its descent

Dow support has been found around the 16,150 level, with the bounce in US futures heading towards the daily pivot at 16,362. Beyond that we have the 50-hour SMA at 16,394. As with other markets, however, rallies are there to be sold while the RSI is stuck on a declining path. Further support is to be found around 16,000 itself, and then towards 15,814 and the August lows at 15,600. 

Dow Jones chart

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