Levels to watch: FTSE 100, DAX and S&P 500

Stock markets are lower again this morning, as a brief rebound for European markets fizzles out.

FTSE 100 slips below 7000

The FTSE 100 has taken another lurch lower, moving below the 7000 level.

A retest of the lows from October, from 6840 to 6920 looks likely, with rallies over the past two days finding selling pressure. A break below 6840 would open the way to 6640.

DAX bounce provides sellers with an entry

Yesterday, a rebound for the DAX from below 11,300 to 11,500 merely provided an opportunity for sellers.

Below 11,266 the price will head back to the October lows at 11,050, coming close to the rising trendline support level from the late 2011 lows. A break below 11,050 brings 10,823 into view. A firm move above 11,500 is needed to suggest a bullish recovery.

S&P 500 sheds further ground

The retracement of the S&P 500 continues to gather pace, as the price returns to the 2700 area that has previously been interesting support.

Below here the 2600 lows come into play. A rebound above 2760 is needed to suggest a near-term recovery.

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