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Levels to watch: FTSE 100, DAX and Dow

Overnight weakness has seen European and US markets break lower in a meaningful manner. However, with key support still intact, there is a chance we will see the price turn higher once more before long.

FTSE 100 bounces from 7600 support

The FTSE 100 sold off sharply yesterday evening, with the price falling into the 7600 support level. That level represents the previous all-time high from early June.

A break below that level would have pointed towards a retracement of the wider 7279-7796 rally. Until we break below 7600, there is a chance we could bottom out from here. The key confirmation signal to such a move would be a rally through the first swing high at 7709. 

DAX pushing higher after deep retracement

The DAX is turning higher after selling off into the 76.4% retracement, within a wider uptrend.

That creation of higher highs and higher lows would be broken, should the price fall below 13,133. As such, a bullish outlook is in place, as long as the price remains above 13,133, where a fall below that level would signal a bearish shift.

Dow drops out of rising wedge formation

The Dow Jones has tumbled towards a crucial support level overnight, with the index negating the bullish breakout seen on Friday.

The 26,097 level is going to be key in determining the outlook going forward, where a break below there would point towards a more protracted move to the downside. Until then, the index remains within a bullish trend, and therefore there is a strong chance we will see the price start to turn higher from here. 

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