Levels to watch: FTSE, DAX and Dow

The sell-off continues, with European markets crashing below key support levels. However, with the Dow Jones at a key support level, we could see the selling ramp up once more as the day progresses.

Source: Bloomberg

FTSE weakness continues

The FTSE 100 is pushing lower once more this morning, with price breaking below the crucial 6767 mark.

That provides us with the confidence that the short-term trend is set to continue and as such, a bearish outlook remains in place, with the next support levels of note coming in at 6721 and 6640.

As long as price continue to create lower highs and lower lows, it makes sense to remain bearish.

DAX crashes lower once more

We look set for yet another day of weakness ahead for the DAX if this morning’s price action is anything to go by. With price having broken below 10,388, the short-term downtrend is now unchallenged, with support levels of 10,245 and 10,185 worth watching out for.

Much the same story as the FTSE here, with lower highs and lower lows the key to a continuation of this trend.

Dow attempts to break below crucial support level

The Dow Jones returned to the 17,906 level yesterday following a week of weakness. This level is crucial to keeping price relatively respectable.

Should we see price post an hourly close below 17,906, then this would be a bearish signal that we could be due a sharp move lower. A bearish view remains unless price breaks back above 18,045.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.