DAX and Dow break key support levels amid recent sell-off
The indices markets have turned lower yet again, with fresh Mexican sanctions from Trump driving risk assets lower. With bearish signals in play, further downside looks likely from here.
FTSE 100 drops into key support level
The FTSE 100 is on the back foot once more, with the US tariffs on Mexico denting market sentiment globally.
The key for this market is whether we will see a break below the 7145-7136 zone or not. Should that occur, we would see the completion of a wider head and shoulders formation, thus pointing towards further downside to come. A break above the 7237 level would be needed to break out of this current short-term downtrend.
DAX breaks below crucial support level
The DAX has managed to break below the 11,824 support level, bringing about a clear bearish signal.
The recent rebound failed at the 11,925 swing low, and that is the level which needs to be broken to negate this current bearish outlook. As such, rebounds look like selling opportunities unless that level is broken.
Dow head and shoulders breakdown continues
The Dow Jones has been selling off heavily overnight, with the index turning lower after a rebound into the 25,220 swing low. That level represents the head and shoulders neckline, which provides us with this wider bearish outlook.
As such, further downside looks likely, with rebounds sold into. Only a break through 25,220 would negate the bearish outlook.
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