Levels to watch: FTSE, DAX and Dow

Heavy losses yesterday put indices on a bearish footing, as concerns about US interest rates hit home once again. 

A man's reflection in a chart
Source: Bloomberg

FTSE could fall to 6000

Having fallen through the 50-day SMA (6250) yesterday, the index may well be on its way to test the bottom end of the rising channel on the daily chart. Some support is possible around 6093, but otherwise 6000 could be the next destination. Intraday bounces may take the price as far as the daily pivot at 6197, but for the moment these will likely be viewed as fresh selling opportunities. 

FTSE 100 chart

DAX punctures key support

Downward momentum is in full flow here, as the price finally breaks below the key 10,800 support area. The next areas to watch will be those around 10,635 and then 10,538, but overall it looks as if the sell-off will run further, towards the 10,260 zone. Bulls need to recover 10,800 soon, to have a chance at the 11,000 area again, where gains faltered at the beginning of the week.

DAX chart

Dow Jones may test 17,230

This index's heavy move down yesterday clearly indicated that we have seen a short-term top. The price has fallen below the 200-day SMA once again (17,590), opening the way to a test of the 17,230 support zone, and potentially further, on to the mid-October lows around 17,120. Buyers need to push back through 17,600 to suggest that the move down has run its course. 

Dow Jones chart

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