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

There has been little respite for the FTSE 100, although the DAX has managed to rally off the lows for now.

FTSE 100 still unable to rally

The declines continued yesterday for the FTSE 100, although the pace has slowed.

Having opened below 7340 support, the price now looks to the 7280 lows from the end of November last year. Below this, 7195 and then 7127 come into play. A close back above 7340 would provide a more bullish view.

DAX bounces from four-month low

The next major area of support for the DAX is 11,700, with a recovery above 12,100 needed to provide a more bullish view, as this would breach yesterday’s highs from early on in the session.

A failure to move above 12,100 suggests that more downside is likely.

S&P 500 dips to a three-day low

The S&P 500 has returned to the 2880 level and for now is holding around it.

Further declines take us to the 50-day simple moving average (SMA) at 2830 and then the 2800 area that held so strongly throughout July and August. A recovery above 2890 would indicate that this period of weakness has likely run its course.

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