Indices edge up after heavy losses on Monday
Stock markets made headway late on Monday, rebounding from the worst of the selloff, with some more gains in early trading today.
FTSE 100
The FTSE 100 dipped below the 200-day simple moving average (SMA) of 6895 yesterday, but then came storming back. It has opened above the 200-day today, and will be aiming to continue its recovery and retake 7000.
A renewed drop below 6870 would mark a resumption of the September decline.
DAX
As in July, the index has neared 15,000, managing to halt its decline in the process.
If a similar move to July develops then we look for continued gains above 15,400, accompanied by rising stochastics.
S&P 500
The price dipped below the 100-day SMA yesterday, but has recovered in early trading. Buyers will hope that further gains above 4439 (the 50-day SMA) will signal that a recovery is in place.
The bounce from the lows seems to point towards a recovery, but a reversal below 4336 and the 100-day SMA would hand the initiative to the sellers.
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