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FTSE 100, DAX and Dow weakening after Monday’s rebound

FTSE 100, DAX, and Dow are starting to build bearish momentum once again, with Monday’s rebound looking increasingly like a retracement.

FTSE 100 consolidates ahead of likely downturn

The FTSE 100 has been consolidating overnight, with the index likely to be pausing ahead of another decline.

The wider trend of lower highs and lows seen throughout August points towards a likely move lower before long, with a break through 7189 required to bring about a new bullish outlook. A bearish picture remains in play, therefore, unless the price breaks through the 7189 level.

DAX reversing lower after deep retracement

The DAX also looks set for another period of weakness, with yesterday’s rally taking the index into the 76.4% Fibonacci retracement level (11,758).

Given the recent creation of lower highs and lows, coupled with the Fibonacci resistance level, further downside looks likely. With that in mind, a bearish outlook is in play here, with a break through the 11,854 swing-high required to negate that view.

Dow grinding lower after recent rebound

Much like the FTSE 100 and DAX, the Dow Jones managed to regain ground on Monday, with the price rising into the 61.8% Fibonacci retracement level. However, we are seeing the price turn lower from that resistance level, in what could be another leg back towards the lower ends of the recent 25,075-26,425 consolidation zone.

The trend of marginally higher lows over the course of August points towards a break below 25,354 being needed to bring a wider bearish signal. Nonetheless, until that happens, it looks likely we will see the price drift lower towards the bottom end of the recent consolidation zone.

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