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Levels to watch: FTSE 100, DAX and Dow

Market downside has brought a number of bearish breaks across global indices. With the FTSE 100 breaking key support, will we see the DAX and Dow do the same?

FTSE 100 breaks key support following wedge

Following a move lower from the rising wedge in play throughout February, the FTSE 100 has managed to break below the key 7187 level.

While that break below 7187 points towards downside for the pair, the respect of the 50% retracement raises the chances that we will move higher from here. A break above 7293 would be required to negate the possibility of another leg lower, and until then there is a good chance that a short-term bounce would be greeted by another leg lower.

DAX heads towards crucial support level

The DAX has managed to tumble towards the crucial 12,281 support level overnight, with a break below that level pointing towards a more protracted move lower.

As long as the price remains above that level, there is a strong possibility it will turn higher. As such, watch for a break or rebound from 12,281 as a determinant of forthcoming price action.

Dow breakdown brings us into Fibonacci support zone

The Dow Jones has similarly broken down, with the price falling into a deep retracement.

The index needs to break below 24,592 in order to have wider bearish implications. Until then, there is a chance we could see a rebound from this 24,881-25,059 zone. 

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