Levels to watch: FTSE 100, DAX and Dow

The indices rebound fails to last, with the price pulling back into key support levels. With the FTSE 100, DAX and Dow all dropping into the 76.4% level, we are at a pivotal point for this recovery.

FTSE 100 rebound coming under pressure

The FTSE 100 recovery has stalled somewhat, with a sharp deterioration yesterday evening bringing the index into a deep retracement (near 76.4%).

The subsequent rebound seems to lack emphasis for now, and a break below 6910 would point towards the bearish picture coming back into play.

DAX tumbling lower after bullish break

The DAX double bottom break appears to have done little to help the bullish case, with the price falling sharply since.

We have not seen the price fall below the 11,704 support level yet, which means there is still a good chance of seeing it turn higher from the 76.4% retracement (11,785). With the previous low of 11,704 coinciding with the low set on 5 March, the ability to break below that level would have particularly bearish connotations. 

Dow rebound falters, with Fibonacci support in play

The Dow Jones has also dropped back into the 76.4% retracement, with the price having turned lower from the 61.8% retracement yesterday.

There is still a good chance we could see the price turn higher from here, where a fall below 23,505 would be required to bring about a bearish continuation signal. Until that happens, there is a chance of a rebound, if the price respects the 76.4% level.  

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