Levels to watch: FTSE, DAX and Dow

Indices have come under some pressure, but are not in outright sell mode yet. 

German stock exchange
Source: Bloomberg

FTSE 100 on the edge of a drop

Over the past week, the FTSE 100 has edged lower, moving back to key support at 7260. Now, this level looks to be under threat, with a firm push below it opening the way to 7220 and 7130.

Bulls will need to hold 7260 and then turn higher to retake 7300. We may be on the cusp of a bigger drop, but with the price intraday oversold bears will want to hold fire for the time being.

DAX faces mixed fortunes

The DAX has reversed from resistance at 12,048, and is now on the way lower. However, the rising trendline will come into play around 11,860, and bears will need to break this to be sure a bigger drop is on the way. Below this, 11,700 ad then 11,500 come into play.

Any recovery back above 11,930 could signal the pullback over the past 12 hours was just another dip in the rally.

Dow uptrend continues

US markets seem to have hit peak euphoria, but this always carries a seed of danger.

For now all is well with the Dow Jones uptrend, and we could see around 200 points shaved off and still be in a rally. A drop through 20,700 would be the first step, but the real sign would be a fall below 20,600. 

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