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Levels to watch: FTSE 100, DAX and Dow

Indices recover from a sharp move lower yesterday, yet with the likes of the DAX testing key support, the weakness may not be over yet.

FTSE 100 falls below near-term support

The FTSE 100 has dropped below 7535 yesterday evening, providing a greater possibility of further downside in the short term.

Should the price break back above the 7564 mark, then this possibility would be largely negated. However, another move lower, and a break below yesterday’s low of 7527, would point towards the beginning of a period of retracement, where 7511 would mark the next key support level. 

DAX turns lower into key support level

The DAX has turned lower this morning, following on from a similar move yesterday.

Crucially, we are seeing the price move back into yesterday’s low of 13,197, where a break below this level would signal a likely extension to the downside. As such, today’s price action will be dictated by the ability to stay above 13,197.

Dow moving higher from trendline support

The Dow Jones is turning higher from trendline support this morning, with the index getting a boost from the successful senate vote.

This points towards a likely move back to the previous highs of 24,875. A bullish outlook remains in place, unless we see a break below 24,713.

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