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

The selling may not be over yet, with the DAX and S&P 500 breaking below key support.

Source: Bloomberg

FTSE 100 falls into 61.8% retracement

The FTSE 100 has continued its descent, with the index dropping into a wider 61.8% retracement around 7473. That level has been providing clear support overnight, and will dictate the state of play for today.

An hourly close below 7473 would point towards a possible move into 7401 (76.4%). Should we see any bounce from here, we would need to see the price move above 7563 to negate the current short-term downtrend.

DAX dropping below key support

The DAX has sold off sharply over the week, with the price falling below the 76.4% retracement overnight (12,945).

That points towards the possibility of further downside, where we would need to see an hourly close above 13,006 to break out of this bearish picture.

S&P 500 continues to channel lower

The S&P 500 has continued its downturn, with the price channeling lower at a gradual pace. That points towards a possible rebound from trendline support in the near future.

However, unless we see a break above 2835, further downside looks likely from here. It is notable that price has been creating deep (>76.4%) retracements within this channel, and thus any bounce back into trendline resistance could provide a good short-term selling opportunity.

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