Indices stage a rebound
Indices are looking to stage a recovery after heavy losses yesterday, but the overall cautious view remains firmly in place.
FTSE 100
After faltering last week at 7130 the FTSE 100 has continued to weaken, and while it has edged up this morning in early trading the losses of the past few days have begun to negate the bullish view created by last week’s bounce.
Buyers need to push the price back above the 50-day simple moving average (SMA) at 7090, while on the downside sellers will be looking for a renewed move below 7000.
DAX
Yesterday’s drop has put the index back on a downward path, with the small bounce seen so far today doing little to change this outlook.
The hope for buyers will be that the price can hold 15,280, and then continue to move back above 15,500.
Sellers will hope that the brief overnight bounce attracts more sellers, driving the price back towards 15,000.
S&P 500
The S&P 500's drop on Tuesday stalled at the 100-day SMA (4350), just as last week’s bounce began from there.
A recovery above 4400 could point towards more gains. A drop back below 4350 and then below 4330 points towards additional downside.
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