FTSE 100, DAX and Dow decline within wider uptrends
FTSE 100, DAX and Dow start to decline, but how long will it last?
FTSE 100 declines in the latest leg of recent downturn
The FTSE 100 has slumped after a deep retracement yesterday morning, with the price now dropping below the key 7389 support level. That sees a continuation of this recent downturn, with the index heading for further downside.
This takes place within a symmetrical triangle, and thus the weakness we are currently seeing looks like a probable retracement of the 7231-7549 rally. With that in mind, we are likely to find buyers once again within the 61.8% and 76.4% Fibonacci levels (7306-7353) before we turn upwards to start a drive towards the upper echelons of the symmetrical triangle formation in play over recent months. A break below 7231 would be needed to bring about a wider bearish outlook and provide confidence that we will see a continuation of the current short-term bearish outlook.

DAX selling gather pace, but will it break key support?
The DAX is similarly losing ground, following a period of consolidation around record highs. There is no guarantee that this weakness will last, and thus we could be seeing a short-term retracement of the rally from 13,577.
However, should that support level break, it would point towards a wider period of weakness coming into play for this index. With the price having passed the 61.8% support level, watch out for whether we see the index start to find buyers around the 76.4% Fibonacci support at 13,632.

Dow breaking below support after recent topping pattern
The Dow Jones is also turning lower after recent consolidation, with the break below 29,263 providing the lowest level seen in a week. That looks to bring a completion of a triple top formation, signalling the potential for further declines from here.
Certainly, we would see greater confidence of such a wider decline in the event that the price breaks below the 29,210 level. As such, watch for whether that level breaks to bring a more confident bearish short-term view for the Dow.

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