FTSE 100, DAX and Dow likely to weaken after overnight rebound

FTSE 100, DAX and Dow look likely to turn lower following a period of gains overnight.

FTSE 100 rallies into trendline and Fibonacci resistance

The FTSE 100 has been on the rise overnight, with the index moving into the confluence of trendline and 61.8% Fibonacci resistance. With the price showing signs of weakening within that deep retracement zone, there is a good chance we will start to weaken from here.

Whether we do see more short-term upside or not, a bearish outlook remains in play unless we see a break through 5428 resistance.

DAX breaks through key resistance

The DAX has managed to tentatively push through the 9197 resistance level this morning, raising the possibility of a continuation of this short-term rebound for the index. With the 61.8% Fibonacci retracement level also resting around this point of resistance, we would need to see a clear break higher to signal a likely move into the 76.4% retracement at 9524.

In either case, this is unlikely to be the end of the sell-off, with a bearish wider perspective remaining in place. With that in mind, watch for how we respond to this 9197 level as a gauge of whether this rally ends here or pushes into a more convincing higher high.

Dow Jones starts to turn lower after overnight gains

The Dow Jones is turning lower after an overnight period that has seen the index rise towards the top of a standard deviation channel.

This channel highlights the ongoing downtrend in play, with further weakness likely from here. A break through 21,023 would be required to negate this bearish outlook.

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