Levels to watch: FTSE, DAX and Dow

Sellers are back with a vengeance, with August lows and below now clearly in sight. 

Source: Bloomberg

FTSE 100 eyes 5850

The fact that every bounce continues to be sold is an indication that the buyers simply cannot muster the strength needed for a rally.

Yesterday’s move petered out at 5900, around the 200-hour simple moving average, so with 5645 now in sight we should be expecting much more downside.

Only a recovery of 5850 would hint at a bounce for the FTSE

DAX could see 9000

The lows of late September around 9270 are now in sight for the DAX, but it is not likely that we will stop there.

If this area is broken then 9000 comes into focus, with 8500 the next real area, the lows from October 2014.

Bounces back towards the 50-hour SMA (currently 9630) are likely to keep being sold.

Dow could target August lows

With hourly charts now heavily oversold, we could see the selling pause for the time being, but any small bounces will bring out the sellers.

As with other markets, the lows of August around 15,250 are now the main focus for the Dow Jones.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.