Levels to watch: FTSE, DAX and Dow

Indices are struggling to hold their ground after steep losses yesterday, with the FTSE in particular looking vulnerable to more losses.

A man on the phone looking at data
Source: Bloomberg

FTSE could fall to 6160

A look at the daily chart shows how crucial the 6300 level is becoming. The move below it yesterday raised fears of a more sustained drop, and with the FTSE 100 being essentially in the same place it was at the beginning of October, there is now a risk that a top is in place. A close below 6250 would be the really bearish development, with a move towards 6160 and then 6100 in prospect. The index needs to clear 6500 on the daily chart to confirm the beginning of a new leg higher, while resistance for the time bring is likely around 6370 and then 6430. 

FTSE 100 chart

DAX fighting to hold 10,800

This index continues to battle hard to hold 10,800, but with the attempt to breach 11,000 so firmly rebuffed it looks like we could see the beginning of a swift drop towards 10,620 if it closes below 10,800 today. Any move higher must clear 11,000, which would then target the 200-day SMA at 11,100, and then further resistance at 11,260. 

DAX chart

Dow support to come at 17,600

The sharp drop yesterday hands the initiative to the sellers, as the index continues to leave the rising October trendline far behind. First support is likely at 17,600, with a move through here then heading towards 17,360. Any upward move has to clear 18,000, just above high watermark of the October/early November rally. This would then allow it to target the all-time highs around 18,360. 

Dow Jones chart

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