FTSE 100, Dax and S&P 500 all under pressure
Indices have edged down in early trading.
FTSE 100 drops back
Friday saw the FTSE 100 suffer sharp losses, and with the US out of action today there has been no sight of any uplift in early trading today. Further declines target 6600 and then 6500, which would bring the price back to the 50-day SMA (6504). After such a strong run higher, such short-term weakness will help reset the index and allow it to push higher overall, but for the time being it does look like more declines are likely.
Dax stumbles lower
There are more losses for the DAX as well, although it has only dropped to a two-week low. Rising trendline support from early November and the rising 50-day SMA are both nearby, around 13,440, while dips in December found buyers around 13,100.
S&P 500 futures weaker
US stock markets are closed today for Martin Luther King day, but are afflicted by the same weakness as other indices. Here the S&P 500 is heading to trendline support, and below this 3677 and the 50-day SMA are the next target. For the time being an orderly pullback rather than a sudden decline seem likely.
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