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

Lower highs seem to have been created in European markets, while the US has dropped back from the highs of Monday’s session.

FTSE 100 on the back foot

The FTSE 100 continues to drop back from the highs of last week, potentially creating a new lower high.

Further declines would bring 7400, 7340 and 7290 into play as zones of support. If the index can move back above 7520 then a more bullish view prevails, but any intraday rally that fails to recover 7520 would likely mark a fresh selling opportunity.

DAX continues lower

It does seem like a lower high has been created here, as the DAX continues to fall back from the highs of 12,450 from last week.

Yesterday’s rally found sellers, suggesting more bearish pressure, and a push below 12,200 would target 12,165 and 12,102 in the near term.

S&P 500 drops back from intraday highs

A rally yesterday encountered heavy selling pressure, so we may see further declines today for the S&P 500, towards 2900.

Below this, 2877 comes in as possible support. A rally above yesterday’s high at 2937 targets the high of 2941.

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