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

Indices have seen heavy selling all week, although the US has got off lightly compared to Europe. Now, there are some signs of a rebound. 

FTSE 100 steadies after recent falls

The FTSE 100 remains under selling pressure, and yesterday’s drop from 7660 suggests more downside is likely.

The index fell below the 7590 support level, and so far this morning has not been able to recover this level. Below 7540, the 7490 area comes into view, and then 7390. A move back above 7600 would suggest near-term bullish strength.

DAX touches new two-month lows

Thursday saw the DAX fall to its lowest level since the end of April.

A small recover this morning has seen the index defend the 12,477 area. Near-term resistance lies around 12,550 and then 12,660. Support is possible around 12,408 and then 12,311, while rising trendline support may come into play around 12,200.

S&P 500 fights to recover trendline

US markets have been much less affected by the sell-off, and the S&P 500 is currently fighting to recover the rising trendline from the April lows.

A move back above 2760 would accomplish this and suggest a move back towards 2790. A drop similar to Tuesday’s towards 2728 might well see buyers emerge. 

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