Overnight bounce fizzles out for FTSE 100, DAX and Dow
Indices bounced overnight, but the gains are coming under threat in early trading this morning.
FTSE 100 stuck near overnight lows
The FTSE 100 has stabilised for the time being, rallying from the 7130 level that acted as support in December 2019.
Having seen the initial bounce, we now wait to see whether the price can hold the low from yesterday and carve out further higher lows and then higher highs above 7200. Further declines below 7130 bring 7000 into view, the lows from August and October.
![FTSE 100 chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/FTSE_250220.png)
DAX struggles to hold overnight gains
For the time being, the selling has paused at 13,000, the DAX bouncing from this level overnight.
Now the rally needs to continue, moving above 13,200 and holding above the overnight low. A key indication will be whether it can move and hold above the 50-hour simple moving average (SMA) of 13,290. Further losses below 13,000 target 12,653 and the 200-day SMA.
![DAXchart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/DAX_250220.png)
Dow looks to recover from sell-off
Having seen 1500 points wiped off the Dow Jones in a week, there are signs of a small recovery.
So far, the overnight bounce has stalled at 28,200, although if it can continue to hold above yesterday’s low at 27,860. Below this, 27,400 comes into play. A good first step in any recovery would be a move back above the 50-hour SMA, currently 28,522. If it can hold above this indicator, then a more durable low may form.
![Dow Jones chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/Dow_250220.png)
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