Levels to watch: FTSE, DAX and Dow

So far this morning small moves dominate, after a sharp bounce for European markets yesterday. 

Data screens reflected in a trader's glasses
Source: Bloomberg

FTSE 100 drops into bearish territory

Yesterday saw the index rally to 6800, but then drop back again, with further losses on the open. If bearish momentum persists then the next target is 6680 and the lows of last week. Below here, the index may target the 200-day simple moving average (SMA) at 6547. Any further losses then the rising 2016 uptrend may come into play around 6500. A rally needs to clear 6760 and then manage a daily close above 6800 to suggest that weakness has run its course.

FTSE 100 price chart

DAX struggles to break above 10,700

The jump yesterday pushed the index right back to 10,700, but it was unable to make meaningful progress above this level. Further weakness today may push the price back towards 10,650 and then to 10,600, while below this the 200-day SMA at 10,231 comes into play. A rally has to close above 10,700 and then push on to take out the key resistance level at 10,800.

DAX price chart

Dow hits another high

Another record high for the index yesterday comes as the broader S&P 500 fails to push on. A rally now needs to take out 19,285 to continue higher. Support is possible around 19,147, and then at 19,075. 

Dow Jones price chart

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