DAX heads lower
DAX appears to be ahead of the curve, with the German index turning lower following a bounce overnight. The wider picture looks bearish and thus this would be expected much like the FTSE. Crucially, the 10,400 level has seemingly provided the necessary resistance and any rally will once more see that level form the most notable near-term resistance.
A closed hourly candle below 10,329 would provide us with further confidence of a selloff, yet ultimately a bearish view remains unless we see a new higher low created and a closed hourly candle above 10,400. Even in that occasion, any gains would be seen as short-term rather than anything relevant to the wider picture.
Resistance levels of note are at 10,400, 10,448 and 10,486, with support at 10,329, 10,246 and 10,188.
Dow bounces back above key level
The Dow Jones saw substantial losses yesterday, bringing price well below the 17,100-17,140 support zone which has underpinned the index for the past two months. However, the overnight recovery has since brought price back up above this notable zone for the time being.
With price seemingly looking to sell off once more, it seems we are likely to head towards another bearish day, where the 17,159 low of the day is going to be key. An hourly close below 17,159 should provide the signal that we are set for another negative start to the day.
Ultimately, a bearish view remains and thus further selling is preferred, with support levels of 17,140, 17,907 and 16,955 the initial hurdles to overcome. Resistance would likely be found at 17,278, 17,338 and 17,400 should price rally once more.