Levels to watch: FTSE, DAX and Dow

Sellers seem to be gaining the upper hand once again, as markets run out of reasons to be positive,

Data chart
Source: Bloomberg

FTSE 100 bounced reversed
Yesterday’s bounce proved to be a flash in the pan, with a brief move above 6150 swiftly reversed. Yet the index still finds itself unable to move much below 6100, with the area from 6060 to 6080 acting as a strong cushion of support.

If we do move below here, the 15 September lows – around 6015 – come into play. A daily close below 6000 still eludes the bears, but it is the thing that is needed to really push this market down.

A turnaround from this point would need to close above 6250 on a daily basis, but at this point even this move seems too much to ask for the bulls.

DAX still tested by resistance levels
10,000 has become the new resistance level to beat for DAX buyers, but with Volkswagen still sullying sentiment for German investors, it looks like the first area to be tested is support at 9900, followed on by 9800.

Once this is broken we may see a more sustained dip, taking us in the direction of 9600. If the buyers can retake 10,000 soon, then the next area to watch is 10,300.

Dow still sliding
Dow Jones sellers will be looking to push the index back towards the lows of last week – below 16,400 – with a further decline heading towards support at 16,240 and then 16,147.

The downside target to beat is still 16,000, and only a daily close below here would confirm a bigger downward move is in play. Buyers have to regain 16,600 and soon, as this index continues to look ripe for a more sustained sell-off. 

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