Levels to watch: FTSE 100, DAX and S&P 500

Risk appetite has diminished ahead of the weekend, with European markets in particular under heavy pressure.

FTSE 100 falters once more

The FTSE 100 has found it hard to cling on to gains above 7750, with a steady decline from the highs of Monday’s session.

The downtrend line from the highs at 7900 remains intact, despite an attempt to break it. Last week’s support at 7590 is now the area to watch, since if this breaks a deeper retracement is likely. Any rebound needs to clear 7700 and close above the downtrend line to signal a move higher is underway.

DAX takes a tumble

The rally here for DAX that seemed so secure two days ago now looks to be under serious threat.

One glimmer of hope would be a close above the 12,650 level and the downtrend line from the May highs that the index broke at the beginning of the week. Further declines below this trendline support bring 12,551 and 12,477 into view. A move back above 12,742 would suggest a rally is back in play.

S&P 500 sees modest losses for a change

Thursday saw the S&P 500’s strong move higher start to falter, with a modest retracement in the futures seen so far this morning.

The first possible area of support is 2740, and then on to 2728. A deeper pullback targets the rising trendline from the May lows, around 2720. A push above 2780 brings the 2800 area into play. 

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