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

The sellers are still in charge here, with the latest overnight bounce fizzling out. It appears we may be in for a fresh bought of downward moves. 

Traders in the NYSE
Source: Bloomberg

FTSE 100 creating new lower low

It looks like we have a new lower high being created here, with the index having moved back towards 6700 overnight before turning lower. Indeed, the 50-hour simple moving average (currently 6702) has been doing well since Monday evening to act as resistance.

A move through the crucial 6650 area would open the way to 6610 and the lows of 4 August. Below this the next area to watch would be 6500 and then 6430.

Any rally needs to get back above 6774, the late Monday high, and then push in the direction of the 200-hour SMA at 6804. 

DAX gains have petered out

Here too the overnight bounce has faded, with gains petering out just above 10,450. The next target would be the low of yesterday around 10,350, and then below this 10,300.

From the market reaction so far it looks like rallies will continue to be sold, with the picture unlikely to change unless the price pushes back through 10,550. 

S&P 500 needs to break Monday’s high

So far 2136 has marked the limit of gains, with the price turning lower once again. The first area of support would be 2120, the lows of yesterday, and then below this Monday’s low at 2110. If this is breached then the next area to watch becomes the rising trend line off the February lows, potentially around 2105.

As with the other two indices, the market will need to push through Monday’s high (in this case 2160), to suggest the bearish state of affairs has come to an end. 

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