FTSE supported by 6820
At the time of writing the FTSE 100 sits at a key support level of 6820; the low from the beginning of the week. However, things don’t look particularly positive given the loss of the 200-hour moving average this morning.
If we drop from here then the next level would be 6765, which formed the low point from last week and saw the beginning of the run towards 6900. On a daily chart there is major support at 6722. Any rally would be hobbled by 6867 and then 6880.
DAX slips lower
For the German index the probe above 9732 was too much, and the price has slipped lower. Although we are off the lows, any upward move would face difficulty in moving beyond 9732, while the 15 May intraday peak around 9812 is a second line of resistance.
As with the FTSE, the 7 May low is providing some support in the short term, around 9394, but if this is lost we would be looking to push down towards 9084 and then 9016.
Dow overnight gains capped
The 16,405 level continues to provide a resting place for the Dow Jones, after it bounced from here yesterday and during the morning session today. Overnight gains were capped at 16,454, and even if we do look to recover lost ground I think 16,600 will be another problem.
The index has recovered from being oversold on an hourly chart, while it has also found support from the 50-day moving average. The Dow continues to be the most important index to watch at the moment, and if buying can resume in earnest I would still look towards 16,750 on the upside.