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

Markets remain under pressure, with indices lower in early trading. 

German stock exchange
Source: Bloomberg

FTSE 100 opens below the rising trendline

The FTSE broke lower yesterday, and while it closed above the rising trendline, it has opened below it this morning. However, while bears can be pleased with their work yesterday, they now need to post a daily close below 7294, the lows from last week. Below this, 7260 and then the 200-day simple moving average (SMA) at 7198 come into play.

A recovery needs to move back above the rising trendline, and then above 7360. 

FTSE chart

DAX down to the 100-day SMA

The drop back to the 100-day SMA at 12,375 at the DAX has been followed by small losses this morning. Last week’s low at 12,310 is the next area to watch, and then below this 12,179 and 12,032 come into play.

Bulls need to get the price above 12,500, which proved to be a stumbling block this week, to signal a rebound is in play.

DAX chart

S&P 500 underneath key support

The topping pattern goes on S&P 500, with a drop below previous key support at 2420 raising the prospect of a test of 2400. It would need a close below the low from 18 May at 2346 to create a new lower low.

Rallies have been sold all week, so unless the price moves back above 2435, the bearish outlook will continue to predominate. 

S&P 500 chart

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