FTSE 100, DAX and Dow continue to suffer FOMC blues
FTSE, DAX, and Dow continue to suffer after last week’s change of tone from the Federal Reserve. Will the wider uptrend come to the rescue?
FTSE 100 slump takes index back into wider retracement zone
The FTSE 100 100 has been hit hard in the wake of the Federal Open Market Committee (FOMC) meeting, with the index joining the bearish chorus evident throughout global markets ever since. The latest leg lower has taken us into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels. This wider retracement is based upon a four-month uptrend evident on the daily timeframe. With that in mind, there is still a good chance we see the bulls start to gain some traction around this zone, with a break below 6822 required to bring a wider bearish outlook into play.
DAX breaks lower, yet Fibonacci levels come into play
The DAX has similarly suffered heavy losses of late, with Friday seeing the index tumble through 15502 to end a short-term uptrend. Nonetheless, this brings us into the wider retracement drawn from the 14961 low established in mid-May. Thus far price has respected the 61.8% Fibonacci support level at 15283, yet is heading back towards the key level once again. As such, watch for potential bullish reversal signs from this 15283-15160 support zone, with a break below 14961 required to negate this wider bullish trend.
Dow Jones breaks through key support level
The Dow has been hit hard of late, with the index underperforming against the likes of the S&P 500 and Nasdaq in the wake of the FOMC meeting last week. That selloff has taken us back below the 33287 low, bringing a worrying sign for Dow bulls. Much like the FTSE and DAX there is a wider uptrend in play which provides the potential for a rebound from Fibonacci support. Nonetheless, those levels come at 31617 and 32282, highlighting the possibility of further downside to come. This morning has seen initial losses recovered, highlighting the potential for a short-term reprieve. However, such a move will be driven by European markets for now. As such, watch the likes of the DAX and FTSE to see if markets are finding support on near-term support or not.
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