Levels to watch: FTSE 100, DAX and Dow

Indices recover from a sharp move lower yesterday, yet with the likes of the DAX testing key support, the weakness may not be over yet.

FTSE 100 falls below near-term support

The FTSE 100 has dropped below 7535 yesterday evening, providing a greater possibility of further downside in the short term.

Should the price break back above the 7564 mark, then this possibility would be largely negated. However, another move lower, and a break below yesterday’s low of 7527, would point towards the beginning of a period of retracement, where 7511 would mark the next key support level. 

DAX turns lower into key support level

The DAX has turned lower this morning, following on from a similar move yesterday.

Crucially, we are seeing the price move back into yesterday’s low of 13,197, where a break below this level would signal a likely extension to the downside. As such, today’s price action will be dictated by the ability to stay above 13,197.

Dow moving higher from trendline support

The Dow Jones is turning higher from trendline support this morning, with the index getting a boost from the successful senate vote.

This points towards a likely move back to the previous highs of 24,875. A bullish outlook remains in place, unless we see a break below 24,713.

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IGA Group is intended for general circulation. 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 or 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. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.