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

Indices have begun the week on a sour note, with key support likely to be tested for the FTSE 100. 

Source: Bloomberg

FTSE 100 holds on to 7300 for now

Despite heavy losses over the past week, FTSE 100 continued to hold the 7300 area, and looks to be doing so again today.

Below this, the 200-day simple moving average (SMA) comes into play at 7268, and from there a bigger unwind to 7100 could be a possibility. Any rally needs to post a close above 7360 to indicate another attempt at breaking the post-June downtrend is underway. 

DAX lacking momentum to break the downtrend?

The DAX failed to break the 12,300 level last week, so a retest of the 200-day SMA at 12,000 is now a distinct possibility. From here, 11,900 and then 11,695 come into play.

A close back above 12,300 would indicate that the downtrend from the June high has been broken, but it looks like bulls will have a hard time assembling sufficient momentum for this. 

S&P 500 about to test 100-day SMA

The S&P 500 is now looking to test the 100-day SMA at 2418, with a close below this marking a significant development (the last time it opened below the 100-day SMA was 7 November 2016).

Below here we would look to 2400 as a possible area, where buyers may step in, but a daily close below that level opens the way to 2370 and then 2354, the 200-day SMA. 

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