DAX and Dow break key support levels amid recent sell-off

The indices markets have turned lower yet again, with fresh Mexican sanctions from Trump driving risk assets lower. With bearish signals in play, further downside looks likely from here.

FTSE 100 drops into key support level

The FTSE 100 is on the back foot once more, with the US tariffs on Mexico denting market sentiment globally.

The key for this market is whether we will see a break below the 7145-7136 zone or not. Should that occur, we would see the completion of a wider head and shoulders formation, thus pointing towards further downside to come. A break above the 7237 level would be needed to break out of this current short-term downtrend.

DAX breaks below crucial support level

The DAX has managed to break below the 11,824 support level, bringing about a clear bearish signal.

The recent rebound failed at the 11,925 swing low, and that is the level which needs to be broken to negate this current bearish outlook. As such, rebounds look like selling opportunities unless that level is broken.

Dow head and shoulders breakdown continues

The Dow Jones has been selling off heavily overnight, with the index turning lower after a rebound into the 25,220 swing low. That level represents the head and shoulders neckline, which provides us with this wider bearish outlook.

As such, further downside looks likely, with rebounds sold into. Only a break through 25,220 would negate the bearish outlook.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.