FTSE 100, DAX and Dow head lower once more

FTSE 100, DAX and Dow head lower, but key hurdles remain until we can say this sell-off will have legs.

FTSE 100 slumps as second wave fears finally take their toll

The FTSE 100 has been on the slide, with the breakdown below 6181 providing an end to the recent period of gains seen on the index.

Despite seeing some initial support around the 61.8%, the index is breaking lower once more this morning, with the price heading towards the confluence of trendline and 76.4% Fibonacci support level (6028). From a wider perspective, this selling pressure needs to break through the 5930 lows to bring about a wider bearish picture.

DAX drops into Fibonacci support

The DAX has also reversed lower, with the recent rally into 76.4% Fibonacci resistance (12,619) bringing about a bearish reversal for the index. We are currently seeing the index respect Fibonacci support (11,980), following an initial decline.

Down below, the next Fibonacci support level comes into play at 11,829 (76.4%). Again, while we are seeing sharp downside for now, a break below the 11,586 level is required to bring a wider bearish picture into play. Until then, the ability to break Fibonacci support is key here, with a more bullish picture only coming into play with a break through the overnight peak of 12,236.

Dow Jones breaks trendline support amid recent decline

The Dow Jones has managed to break below trendline support this morning, bringing the index back into the 76.4% Fibonacci region. Recent declines point towards a potential bearish reversal coming into play, yet a drop below the 24,564 level would be required to bring greater confidence that these losses are set to develop into something bigger.

For the short term, a decline below the 76.4% Fibonacci level at 25,091 would bring greater confidence of further short-term downside.

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