Levels to watch: FTSE, DAX and Dow

European indices begin to give way, while the Dow Jones finally breaks out of triangle resistance.

Data
Source: Bloomberg

FTSE selling off following resurgence

The FTSE 100 is selling off sharply this morning, following a two day resurgence. The failure to create a new high, followed by a break below the near-term support of 6251 sparked this selloff and I believe this is the beginning of a relatively strong move lower.

With the FOMC in view, this picture can change significantly, but I will be looking for further downside today, to move us towards 6200 and 6183 support levels.

FTSE chart

DAX continues sideways yet downside seems likely

The DAX has seen a relatively minimal resurgence, with price failing to break back above the 10,329 resistance level. This morning has seen price tumble once more, yet much has been recovered. I see any prices between 10,303 and 10,329 as a likely area that the sellers will come back in and the failing highs seems a precursor for the lows to give way too.

Thus I am bearish unless price closes above 10,329. The 10,171 mark seems a likely support level to pull back to once more.

DAX chart

Dow breaks above major resistance level

The Dow Jones has managed to break above the 16,700 resistance level, bringing a greater likeliness of further upside to come. Given that we used 16,700 as resistance, it is now likely to provide support for the next leg higher. The failure to create a new intraday high is a bit of a worry and makes me feel like we are going to see a move lower.

The question is whether that will manage to hold up around 16,700 and push higher. For this reason I am bullish above 16,700, yet am weary of a possible break back into the triangle. Thus an intraday close below 16,700 would invalidate my bullish view.

Dow Jones chart

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.