Levels to watch: FTSE, DAX and Dow

While we have seen some falls in price this morning, Janet Yellen’s impending appearance will likely prevent much drama.

Traders in a German stock exchange
Source: Bloomberg

FTSE 100 weakness continues

FTSE weakness this morning continues the downtrend seen since 15 August, even if we may see some hesitation ahead of Janet Yellen’s speech today.

Nonetheless, it will take a move through 6850 to break the descending channel seen below on the two-hour channel. A drop through yesterday’s low at 6780 might see the index head in the direction of 6600/6650. 

DAX remains in a downward channel

There was little success for buyers yesterday, with the price dropping below 10,500 and staying there for most of the day.

Like the FTSE, the index also has its own downward channel, and a push towards the bottom end would see a drop back below 10,400, to the low of 22 August.

It would need to clear 10,600 to break out of this current formation, with further resistance at 10,670.

Dow price continues to hang on

Despite weakness yesterday, the price is still hanging on at the bottom end of the current range, around 18,470. A bounce from here would put the index back on course to test the top end of the range, from 18,600 to 18,670.

Much depends on what Janet Yellen says today, but it will take a move through 18,400 to create real weakness, while some further support is possible around 18,250. 

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