Levels to watch: FTSE 100, DAX and Dow

Market downside has brought a number of bearish breaks across global indices. With the FTSE 100 breaking key support, will we see the DAX and Dow do the same?

FTSE 100 breaks key support following wedge

Following a move lower from the rising wedge in play throughout February, the FTSE 100 has managed to break below the key 7187 level.

While that break below 7187 points towards downside for the pair, the respect of the 50% retracement raises the chances that we will move higher from here. A break above 7293 would be required to negate the possibility of another leg lower, and until then there is a good chance that a short-term bounce would be greeted by another leg lower.

DAX heads towards crucial support level

The DAX has managed to tumble towards the crucial 12,281 support level overnight, with a break below that level pointing towards a more protracted move lower.

As long as the price remains above that level, there is a strong possibility it will turn higher. As such, watch for a break or rebound from 12,281 as a determinant of forthcoming price action.

Dow breakdown brings us into Fibonacci support zone

The Dow Jones has similarly broken down, with the price falling into a deep retracement.

The index needs to break below 24,592 in order to have wider bearish implications. Until then, there is a chance we could see a rebound from this 24,881-25,059 zone. 

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.