Indices gap lower on trade war fears
Trade war fears are driving markets lower this morning, with further declines eating into the gains for the year so far.
FTSE 100 gaps down as sellers push their advantage
The FTSE 100 has gapped lower, moving below the 7150 area that marked lows back in March and also in early May.
Further declines head towards 7040, the late February low. Intraday rallies continue to be sold, and for the time being this looks to bolster the short view. A recovery above 7250 would help to suggest that the pullback has run its course.
DAX in firmly bearish mode
There is little to support a positive short-term view for the DAX, with a gap lower below 11,700 furthering the bearish view.
The next area of support is around 11,300, the lows of late March. A recovery back above 11,800 would help to suggest a near-term low is in.
S&P 500 slumps towards March low
The March low at 2730 is under threat for the S&P 500, and a close below here would reinforce the bearish view. Below this, 2860 and 2820 come into view as potential targets.
Trendline resistance from the May high, which was tested in the middle of the month, would suggest a rebound towards 2800 would still find resistance, and any recovery towards this level would need to then push on above 2800 to suggest a break of trendline resistance.
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