DAX breaks below key support level to continue bearish trend
The DAX managed to break below 11,866 support yesterday, bringing confirmation that this bearish trend remains in play. Given the steep decline yesterday, this morning will likely reverse some of that. Therefore, there's a good chance the gains we are seeing thus far will persist.
However, we would need to see a break above 12,008 to negate the short-term bearish trend. So, until that happens, further downside looks likely.
Dow breaks down after head and shoulders pattern
The Dow Jones managed to break lower, following a short period of sideways consolidation. That formed the second shoulder within a head and shoulders pattern, driving a sharp sell-off for the index.
In a similar manner to the FTSE 100 and DAX, the market is likely to begin regaining ground from here, if only to retrace a portion of yesterday’s decline. However, there is a strong chance that this is part of a wider decline for the index.