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

After US markets went into retreat yesterday, markets are on the back foot this morning.

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FTSE 100 on the move lower

The FTSE 100 dropped sharply yesterday, reinforcing the idea that a lower high has been created since the end of September.

Further declines target 7340, 7280 and then the lows of September around 7220. A push above 7530 would be needed to break the sequence of intraday lower highs seen since the end of September.

FTSE 100 price chart

DAX stuck in a range

Stalemate between buyers and sellers has prevailed since the end of September for the DAX.

While the index is unable to break above 12,350 on a sustained basis, dips towards the 12,200 area have found buyers, with yesterday’s early decline finding plenty of buyers. A break of this area opens the way to 12,100 and then 11,900. Any rally that fails to break 12,400 is a selling opportunity, and a close above 12,450 is needed to restore a more bullish view.

DAX price chart

S&P 500 falters after recent strength

While the S&P 500 rebounded from its lows yesterday, the sellers do still seem to have the upper hand.

Below 2883, the price heads towards the 2870 zone of support. A recovery above 2920 would suggest that the downward move has run its course.

S&P 500 price chart

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