Levels to watch: FTSE, DAX and S&P 500

Losses across the board for indices stem primarily from oil prices, which sold off heavily yesterday, but there may be signs of stabilisation. 

German stock market
Source: Bloomberg

FTSE 100

Weakness persists here, with the index unable to push on beyond 6200. So far this morning dips below 6140 have been bought, repeating the pattern that has been in effect since last Wednesday.

So long as this area holds it looks like bearish momentum will be hard to sustain for the FTSE. However, as has been said all week, 6200-6220 remains too strong for buyers to clear, so we seemed doomed so some more rangebound trading for the time being.


Rallies towards 10,100 keep running out of steam, but overall it would be unwise to get too bearish. We may see weakness down towards 9800, but even a further drop would still need to break the rising daily trendline.

It is likely that dips will still be bought, but maybe not today. Any rally still needs to clear 10,100, and then on towards the 200-day simple moving average at 10,400 for the DAX.

S&P 500

The quick retreat yesterday has put the index into oversold territory on hourly, two-hourly and four-hourly stochastics, for the first time this month. This combination of factors, plus the looming holiday weekend, could see a bounce towards 2050 materialise.

If the price can move back above 2040 then the outlook seems bullish once again.

Further support is possible around 2020 and then 2000 itself, should this sell-off develop momentum. 

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