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

After US markets went into retreat yesterday, markets are on the back foot this morning.

FTSE 100 on the move lower

The FTSE 100 dropped sharply yesterday, reinforcing the idea that a lower high has been created since the end of September.

Further declines target 7340, 7280 and then the lows of September around 7220. A push above 7530 would be needed to break the sequence of intraday lower highs seen since the end of September.

DAX stuck in a range

Stalemate between buyers and sellers has prevailed since the end of September for the DAX.

While the index is unable to break above 12,350 on a sustained basis, dips towards the 12,200 area have found buyers, with yesterday’s early decline finding plenty of buyers. A break of this area opens the way to 12,100 and then 11,900. Any rally that fails to break 12,400 is a selling opportunity, and a close above 12,450 is needed to restore a more bullish view.

S&P 500 falters after recent strength

While the S&P 500 rebounded from its lows yesterday, the sellers do still seem to have the upper hand.

Below 2883, the price heads towards the 2870 zone of support. A recovery above 2920 would suggest that the downward move has run its course.

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