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

Trade war fears are stalking markets again, causing heavy losses across indices.

FTSE 100 stumbles below trendline

The FTSE 100 has clocked up a new six-week low in early trading, putting it back below the downtrend line from the all-time high.

The next area of possible support is 7390, and then 7300. Each intraday rally over the past three weeks has found selling pressure, and it will need a close back above 7700 to reverse the current bearish view.

DAX tumbles towards key support

The DAX has lost 4% in the space of three sessions, and is now testing the area of support around 12,550-12,600.

This prevented further sell-offs in late May and early June, but a break below this would signal a move towards 12,400, where buying pressure emerged in late April. A move back above 12,800 is needed to suggest that the index has recovered and that another test of the downtrend line from the January highs is likely.

S&P 500 risks a bigger drop

The revival of trade war concerns has seen the S&P 500 push below rising trendline support from the May low.

If it closes beneath this line, then 2728 comes in as support, and then 2700 and 2680. A close below this latter level is needed to create a lower low. This more bearish view would be reversed by a move back above the post-May trendline support line, back above 2748.

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