DAX falls into SMA support
The DAX has dropped into a new three-week low this morning, following on from losses brought about yesterday.
With the price currently trading at the 200 simple moving average (SMA), there is a chance of some kind of rebound from here. However, with the price having broken below the 12,799 mark, there is a good chance that any such rebound would be a short-term phenomenon before we see the index turn lower once more. As such, a bearish outlook is in play unless we break above 13,038.
Dow moves back into crucial support level
The Dow Jones has sold into the 24,629 support level once again, marking the fifth time since breaking through that level less than three weeks ago.
Just like the previous four times, this is going to be a crucial hurdle to overcome, with a strong likeliness of a bullish bounce. However, should we finally see a break and close below 24,629 it would bring about a heightened chance of a strong move lower, with the 61.8% Fibonacci retracement some 500 points from the breakout point. In any case, the directional bias will be dictated by the ability or inability to break that critical 24,629 support level.