Levels to watch: FTSE, DAX and Dow

After a poor session in the US, markets are turning to the downside once again.

US trader
Source: Bloomberg

FTSE 100 struggles to make gains

Yesterday saw the index test, and then drop back from, the all-time highs, while for the time being the 7050 area seems to be holding as support.

Over the past few days, moves back to the zone between 7000 and 7050 have seen buyers step in, so bears will need to see sustained price action below 7000. A bounce today needs to clear 7130 to maintain upward momentum. 

DAX fails to push forward

Once again, the index proved unable to push on through 10,650, so it looks like bullish momentum is continuing to weaken.

A drop towards 10,450 will see this area of support tested, with 10,250 below it as the next target. A bounce needs to clear 10,650 and then on to 10,700. 

Dow tries to make up lost ground

Yesterday’s swift drop caught many out, but it merely takes the index back to the key support zone between 18,000 and 18,070 that has stemmed declines since mid-September.

An overnight rally in futures is fading fast, so we could see the price test this area again, but it needs a move below the 12 September lows around 17,900 to really indicate that the sellers have the upper hand. 

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