Levels to watch: FTSE 100, DAX and Dow

European markets have opened lower, following another torrid session in the US.

FTSE 100 downtrend continues

The FTSE 100 has created a lower high as the downtrend continues.

Further weakness will see 6979 and then 6919 tested, and then down to 6841, the lows of late March. A bounce needs to clear 7100 to break the recent high, and then move above 7130 to break the downtrend line.

DAX working to break above 12,164

Buyers have pushed the DAX up from its March lows down at 11,700, but there is still some work to do to break back above the 12,164 high from last week.

The next targets are 11,908 and then 11,692. Even a rebound to 12,300 would still leave the index below the descending trendline from the February highs.

The Dow holding for now

The Dow Jones has, for the moment, managed to hold the 200-day simple moving average (SMA) at 23,523.

A bounce from here would head back towards the downtrend from the record high, and would suggest a rally back to 24,700. A decline below 23,358 would raise the prospect of a test of 23,112.

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