Levels to watch: FTSE 100, DAX and Dow

Markets have sold off yet again, with overnight retracements having provided good shorting opportunities.

FTSE 100 downtrend remains in play, with rebound being met by selling

The FTSE 100 attempted to break higher overnight, with the price passing through trendline resistance.

However, the inability to break through the 7050 swing high was a signal that the trend may not be over yet. With the market turning downward, it is clear that the trend looks likely to post another leg lower. A rally through the 7029 swing high would be required to bring about a more bullish view.

DAX turning lower from deep retracement

The DAX is selling off once more, with the rally into the 76.4% retracement providing a strong selling opportunity.

As such, look for further downside, with a move through the 11,373 swing high required to bring about a more bullish outlook.

Dow remains within downtrend despite pullback

The Dow Jones is similarly deteriorating off the back of a move into the 61.8% retracement yesterday evening.

This downtrend is likely to persist for the time being, with a break through the swing high of 25,106 required to negate this bearish outlook.

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