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

Trade war fears are stalking markets again, causing heavy losses across indices.

IG Analyst

Publication date : 2018-06-19T10:16:57+0100

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FTSE 100 stumbles below trendline

The FTSE 100 has clocked up a new six-week low in early trading, putting it back below the downtrend line from the all-time high.

The next area of possible support is 7390, and then 7300. Each intraday rally over the past three weeks has found selling pressure, and it will need a close back above 7700 to reverse the current bearish view.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX tumbles towards key support

The DAX has lost 4% in the space of three sessions, and is now testing the area of support around 12,550-12,600.

This prevented further sell-offs in late May and early June, but a break below this would signal a move towards 12,400, where buying pressure emerged in late April. A move back above 12,800 is needed to suggest that the index has recovered and that another test of the downtrend line from the January highs is likely.

DAX chart

DAX chart

DAX chart

S&P 500 risks a bigger drop

The revival of trade war concerns has seen the S&P 500 push below rising trendline support from the May low.

If it closes beneath this line, then 2728 comes in as support, and then 2700 and 2680. A close below this latter level is needed to create a lower low. This more bearish view would be reversed by a move back above the post-May trendline support line, back above 2748.

US 500 chart

US 500 chart

US 500 chart

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