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Levels to watch: FTSE 100, DAX and Dow

The indices rebound fails to last, with the price pulling back into key support levels. With the FTSE 100, DAX and Dow all dropping into the 76.4% level, we are at a pivotal point for this recovery.

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FTSE 100 rebound coming under pressure

The FTSE 100 recovery has stalled somewhat, with a sharp deterioration yesterday evening bringing the index into a deep retracement (near 76.4%).

The subsequent rebound seems to lack emphasis for now, and a break below 6910 would point towards the bearish picture coming back into play.

DAX tumbling lower after bullish break

The DAX double bottom break appears to have done little to help the bullish case, with the price falling sharply since.

We have not seen the price fall below the 11,704 support level yet, which means there is still a good chance of seeing it turn higher from the 76.4% retracement (11,785). With the previous low of 11,704 coinciding with the low set on 5 March, the ability to break below that level would have particularly bearish connotations. 

Dow rebound falters, with Fibonacci support in play

The Dow Jones has also dropped back into the 76.4% retracement, with the price having turned lower from the 61.8% retracement yesterday.

There is still a good chance we could see the price turn higher from here, where a fall below 23,505 would be required to bring about a bearish continuation signal. Until that happens, there is a chance of a rebound, if the price respects the 76.4% level.  

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.