FTSE 100, DAX and S&P 500 all under pressure
Indices are suffering in early trading, as the coronavirus situation appears to worsen.
FTSE 100 goes into reverse
Having hit a six-month high last week, the FTSE 100 has moved into retreat, with a bearish moving average convergence/divergence (MACD) crossover earlier in the month proving prescient.
Previous resistance around 7400 now becomes possible support, while a bigger decline heads towards 7250 and rising trendline support from the December 2018 low. For bulls, a closing of the Sunday night gap down around 7530 would be a prerequisite for further upside, and then the price must clear 7640, which provided resistance twice last week.
DAX stumbles in early trading
The DAX has been relatively unaffected by recent volatility, although it has begun to retreat this morning.
Trendline support from the August low may come into play around 13,250, while below this 13,000 could also act as support, having stemmed the declines in November and December. A rally back above 13,500 closes the weekend gap and revives the uptrend.
S&P 500 drops back from record
After the relative calm of the past two weeks, the S&P 500's sudden drop since Friday’s peak will come as a shock. However, the index is still firmly in an uptrend, and perhaps is overdue a sell-off.
Uptrend support from the December low at 3070 would possibly come into play around 3250. Below this, 3210 and then 3180 are previous areas where buying pressure appeared. Closing the overnight gap with a rally back above 3290 would help to revive the bullish view.
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