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Levels to watch: FTSE 100, DAX and S&P 500

A heavy bout of selling took indices sharply lower yesterday, but some small gains are in evidence this morning. 

FTSE 100 drops lower

The FTSE 100 has fallen below the February low at 6919, testing levels not seen since December 2016.

It has bounced from the lows and is attempting to clear 6919. Now, previous areas of possible support become resistance, so we look to 6979, 7025 and 7061 as possible targets. A downward move brings 6640 and then 6518 into play.

DAX attempts to hold level

We are currently witnessing a battle for the 11,908 level, with a close above here bringing 12,051 into view for DAX.

From here, 12,477 is the next target. A fresh decline would bring 11,692 and then 11,426 into view. A relatively high stochastic reading might suggest more potential downside relative to US indices that are closer to oversold territory.

S&P 500 support holds

Yesterday’s plunge took the S&P 500 back to 2628, but this support level appears to be holding for now.

Further support is possible at 2597, then the 200-day simple moving average (SMA) at 2591, and then down to the February lows at 2531.

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