Levels to watch: FTSE, DAX and Dow

Sellers are back with a vengeance, with August lows and below now clearly in sight. 

Source: Bloomberg

FTSE 100 eyes 5850

The fact that every bounce continues to be sold is an indication that the buyers simply cannot muster the strength needed for a rally.

Yesterday’s move petered out at 5900, around the 200-hour simple moving average, so with 5645 now in sight we should be expecting much more downside.

Only a recovery of 5850 would hint at a bounce for the FTSE

DAX could see 9000

The lows of late September around 9270 are now in sight for the DAX, but it is not likely that we will stop there.

If this area is broken then 9000 comes into focus, with 8500 the next real area, the lows from October 2014.

Bounces back towards the 50-hour SMA (currently 9630) are likely to keep being sold.

Dow could target August lows

With hourly charts now heavily oversold, we could see the selling pause for the time being, but any small bounces will bring out the sellers.

As with other markets, the lows of August around 15,250 are now the main focus for the Dow Jones.

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