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

Indices pull back following BoJ disappointment. However, given that we have not seen any reversal signals from price action, there is a good chance we will see markets recover before long.

Traders on a German stock exchange
Source: Bloomberg

FTSE weakness brings us into Fibonacci support

The FTSE has turned lower this morning, following on from a disappointing Bank of Japan meeting. While price has broken through trendline support, we are yet to break out of this rally, with an hourly close below 6663 required to signal a potential wider sell-off for the index.

With that in mind, it is worth being aware of another potential move higher as long as price remains above 6663. The 76.4% retracement is once more a key support level to be watching, with early price having respected this level perfectly so far. 

FTSE 100 price chart

DAX falls into trendline support

The DAX has moved lower, with early selling finding support on an ascending trendline. The key thing to note here is the fact that we remain within an uptrend and as such, further gains seem likely unless we see an hourly close below 10,265.

Should that occur, we could see a deep reversal given the current trendline resistance the index is trying to break through. 

DAX price chart

S&P 500 continues to respect range

The S&P 500 has once more respected trendline resistance, as the index continues to respect the range that has been in place for almost two weeks. Given that price is currently in the middle of the range, it seems worthwhile awaiting a move down to 2160 for longs, or 2168 for shorts.

This is a short-term play. Given the rally into this pattern, the exit is likely to be bullish and as such longs from 2160 are preferred than countertrend shorts.

S&P 500 price chart

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