Levels to watch: FTSE, DAX and Dow

Indices have rallied impressively off the lows, and so far look to be holding on to gains. 

Source: Bloomberg

FTSE 100 could test 5684

The bounce off the lows yesterday was remarkable, but so far today further progress is absent. The index would need to push on beyond 5950 but for the moment even 5900 is a bit of a stretch.

A drop back below 5850 would then head towards yesterday’s lows at 5800, with a move below here still looking like it will test 5684. 

DAX eyes 9400

From the looks of price action so far, it seems the overnight bounce merely provided the opportunity for more selling, with 9622 acting as resistance early on in the session.

A move back below 9480 would then suggest the index is off back to the lows at 9400, while below this the next area to watch is 9260. 

Dow could target 50-day SMA

After a remarkable session, the index is back above the rising hourly trendline, although it still needs to push on beyond resistance at 16,450, where the gains faltered at the end of last week (and also on Monday).

A drop back again today might indicate that the bounce has finally run its course, at which point the index targets 16,227 and then 16,072.

A move through 16,450 would head towards 16,650 and on to the 50-day simple moving average at 16,969. 

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