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

Q2 has started on a very sour note, with indices moving swiftly lower.

Data
Source: Bloomberg

FTSE 100 drops lower
Early weakness here has seen the index careen to the lows of its range, down towards 6100, with support possible around the 6084 level where it bounced on Tuesday. A break below here threatens a swift move to 6000, and then 5950.

Bulls might manage to hold the index up today, but will need to get back to 6200 and then close above it to ensure that the rally continues.

FTSE 100 daily chart

DAX struggles to break higher
9800 has seen bearish momentum stall over the past few weeks, so if this holds we will watch for a bounce back above the rising trendline (i.e. through 9900), that might then set the index up for a move back towards key resistance in the 10,100 area.

A drop through 9800 risks a swift move first to 9564, and then if this fails to hold, all the way down to 9254.

DAX daily chart

S&P 500 looks to head down
It is still unwise to predict that the rally has ended here, but we have seen a sequence of lower-highs since Janet Yellen’s speech. If the index drops below 2040, bearish momentum may accelerate, taking the index down towards 2021 and then 2004.

Upside targets lie around 2075 in the first instance, and then on to 2092. 

S&P daily chart

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