Levels to watch: FTSE, DAX and Dow

After heavy losses yesterday markets are attempting to rally, but already the bounce seems to be running out of steam.

Data on screen
Source: Bloomberg

FTSE 100 back to 5900

Having seen a heavy selloff yesterday, we should expect to see some bounce today, the big question being how far it goes.

The index has moved back to 5900, but we could see some resistance coming in around 5930, and so long as the price holds below 6000 the expectation is that more downside is on the way, with support around 5813 and then 5748. 

DAX could target 9400

So far the index appears to be stabilising around 9500, but the pullback from the 9800 area confirms that the buyers are in retreat.

Bounces towards 9669 are to be expected, but if the index does not push on above this area the likelihood is that the price turns lower.

Downside targets lie around 9400 and then 9307. 

Dow awaits oil movement

The Dow Jones has held above the hourly trendline, reinforcing the view that US markets might have a bit more fight left in them.

However, a failure to push back through 16,300 today should really indicate that we are headed lower, with targets around 16,040, 15,926 and then 15,745.

Much will depend on what oil does, given that is still driving sentiment around the world, but it will take a move back through 16,400 to restore the bullish outlook. 

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