FTSE 100, DAX and S&P 500 all deep in the red

The sell-off has gathered pace once more, resulting in steep losses for European markets and US futures going ‘limit down’ this morning.

FTSE 100 heads back to mid-2016 lows

Another gap down sees the FTSE 100 drop back below 6000, losing all ground gained since June 2016. Below 5894, the price heads towards 5727 and then 5490.

The consolidation of early March has now given way to more downside, with sellers firmly in control. A more bullish view would require a move back above 6200, although this would still need the price to close the gap by moving above 6400.

DAX slumps to lowest in over a year

For the DAX, all the gains since January 2019 have now disappeared, and 10,200 is now the next level to watch, the low from December 2018.

Some more support at 9966 is possible but below this 9160 and 8700 are the next lows to look for. If the index moves above 11,266 then a more positive view might emerge, but the more likely outcome is that brief rebounds become further selling opportunities.

S&P 500 turns lower as oil price war intensifies

We have an answer to the question of whether the February sell-off for the S&P 500 would resolve higher (like August 2019) or lower (as it did in October/November 2018).

One area of support may be 2820, while below this 2730 is the next zone to watch for, the low from May 2019. Rallies over the past week faltered at 3100, providing a clear upside target to watch in the event of any bigger move higher.

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