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Levels to watch: FTSE, DAX and Dow

Indices suffered another tough day yesterday, and so far there is little sign of a meaningful reversal. 

Source: Bloomberg

FTSE 100 could see 6981

A drop yesterday took the index below 7130, although the bottom end of the support range around 7100 still holds.

Nonetheless, it looks like rallies will continue to be sold unless we see a close back above 7180. Downside targets lie at 7060 and then 6981.

DAX eyes 11,750

Yesterday saw the second attempt in as many days to hold above 11,700 fizzle out. However, the price has yet to create a new lower low below the 31 January low at 11,534.

Below this 11,352 and then 11,196 come into view, while a rally needs to clear 11,750 to restore the bullish outlook for the index.

Dow could test 50-day SMA

A bounce during the course of Wednesday’s session took the price back to the 30 January high at 19,970, but further bullish momentum was not forthcoming. A bounce from oversold intraday levels would need to push back above 19,900 to indicate that the lows are in around 19,800. From here the price would then look to move back above 20,000 for the Dow Jones.

A turn lower from here would see the 50-day simple moving average (SMA) at 19,745 tested, and then on to 19,578 and 19,423.

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