Levels to watch: FTSE, DAX and Dow

Indices are in the red once again, as the bulls’ holding action from Tuesday gives way to more losses.

Data
Source: Bloomberg

FTSE 100 sellers in control below 6070

After all the excitement of Monday’s session, we have seen the index bounce around between 6080 up to around 6150.

However, so long as the index fails to push back above 6200 it looks like the sellers are still in control, although they need to push the index below 6070 to confirm that more losses are on the way.

If that happens we look to 6044 and then 6011, with a move to 5900 still on the cards.

Bulls can only rest a little easier if the index gets back above 6200.

DAX eyes 10,400

The DAX continues to push lower, although the 10,200 area that started the mid-December bounce is still to be broken.

However, here too the bears seem to be in the driving seat, with a move to 9970 looking increasingly likely.

Upside moves will need to clear Tuesday’s peak around 10,400 to suggest that the pullback from the late December high is done.

Dow could move towards 16,500

Dow Jones futures are probing the area below 17,000 where they bounced on Monday.

If the move lower continues then 16,845 is not far away, and below this we could see a swift move towards 16,500, as there is precious little support.

Bulls need to recover 17,200 quickly, to reduce the risk of a bigger selloff.

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