FTSE 100, DAX and S&P 500 hold their ground in early trading

FTSE 100 hovers at July support

The index is sitting right at the 7050 support zone, which held back in July.

A drop below 7000 marks a fresh bearish development, and would bring the 6874 level into view, last seen in March.

Given the recent run of losses we might perhaps expect a rebound of sorts to develop, although for this to happen we would need to see a recovery above 7060, and then on above 7120.

A longer-term bounce targets 7500 and then 7570, the highs from September and then August, respectively.

DAX probes recent lows

There is little sign of a rebound here, with the index still close to Friday’s lows.

A move back above the February and June lows of 12,400 would help to provide a more short-term bullish view, although the broader bearish outlook remains in place.

Lower highs have been in place over recent months, so it would need a move above 13,500 to put a dent in this outlook.

Further declines target 11,700, eating into yet more of the post-Covid rebound.

S&P 500 edges up off recent low

June’s lows have been reached, after a huge decline since late August. If this level holds then the index may yet be able to stage a short-term bounce, targeting 3800 and then on towards 3900.

The bigger bearish view remains intact however, given the lower high at 4127.

The next major level to watch is 3582, and then on below that down to 3400.