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

Markets are in retreat, with the DAX falling back from key resistance and the S&P 500 rolling over and looking to keep going lower.

Trader stood by window showing DAX logo
Source: Bloomberg

FTSE 100 in the bull’s hands

The index continues its move lower, after a sharp reversal yesterday that showed strong selling pressure still lies around 7050. The next area to watch is 6940, the lows of 13 and 17 October, and then below this lies the 50-day simple moving average (SMA) at 6893.

Bulls have a clear task if they are to get the index moving higher – a close above 7050. If this is achieved then we could see a move back to 7130. For now, however, the sellers are in charge.

DAX buyers need to breach resistance

Once again 10,800 has provided significant resistance, with the potential for a bigger dip to 10,558 and the 50-day SMA now increasing. Below this we would look to 10,294 and the 100-day SMA, while the area around 10,000 could provide support.

As with the FTSE, buyers have a clear resistance level to breach, in this case 10,800, if they are to maintain upward momentum.

S&P 500 drops leaves sellers in charge

The sharp drop yesterday puts the sellers firmly in charge. If we see a drop through the vital 2140 area then the next area to watch is 2100.

Below this a bigger drop to the 200-day SMA at 2078 is possible. Any rally needs to clear the 50-day SMA at 2157. 

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