​​​European indices slide on weak Eurozone PMIs

​​​FTSE 100 slips on risk-off sentiment ​ ​

The FTSE 100 looks to be on track for a third consecutive day of losses as a rising oil price due to extended voluntary supply cuts by Russia and Saudi Arabia and rising yields put pressure on sentiment and stock markets.

​The breached July-to-September downtrend line, now because of inverse polarity a support line, at 7,390 is about to be tested, together with Tuesday’s low at 7,388. If fallen through, the 7,300 region could soon be back in play. ​Resistance remains to be seen along the 55-day simple moving average (SMA) at 7,475 and also at Monday’s 7,524 high.

​DAX 40 continues to slide ​

The DAX 40 continues to slide, this time due to weak Eurozone PMI data and as German factory orders tumble. They dropped by 11.7% month-on-month (MoM) in July, worse than an expected plunge of 4.0% and the first drop in industrial orders since March and the steepest pace since April 2020. ​

Were Tuesday’s low at 15,690 to be slipped through on a daily chart closing basis, the August lows at 15,545 to 15,469 may be revisited in September. ​A potential bounce may encounter minor resistance around Monday’s low at 15,796 ahead of the 24 August high at 15,895. While the next higher 55-day simple moving average (SMA) at 15,934 and the July-to-September downtrend line at 15,958 cap, overall downside pressure should retain the upper hand.

​S&P 500 is keeling over

​The S&P 500 is beginning to lose upside momentum and is gradually sliding from last week’s 4,540 high to its 4,474 24 August high and the 55-day simple moving average (SMA) at 4,470 as the oil price and yields are rising. ​Traders are looking forward to today’s US ISM services PMI data to gauge the state of the US economy. ​Minor resistance is seen around the 4,500 mark ahead of the current September peak at 4,540.