FTSE 100, DAX and Dow all turning lower
Indices recovered from overnight lows, but their bullish momentum appears to be fading.
FTSE 100 supported around 5000 for now
The FTSE 100 finally pushed below the 5000 level yesterday, and while it has rebounded from the lows, the downtrend is still intact and rallies towards 5180 may find resistance, with 5400 from earlier in the week as the next target.
Fresh declines head towards 4830, as the price makes new lows. It must be said that dips below 5000 have found buyers, but so far upward movement is also lacking. Given the ongoing risk-off environment it may be difficult for the index to muster much bullish momentum.
DAX looks poised to move lower
For the DAX, rallies towards the 50 and 100-hour simple moving averages (SMA) continue to run into selling, but the past four days have seen furious buying of the dips below 8500.
But until we see higher highs and higher lows on the hourly chart the bearish view remains in place.
Dow bounces from overnight low
After being released from ‘limit down’ yesterday, the Dow Jones price dropped sharply to a new lower low, before rebounding to 20,500 and a lower high.
The downtrend is still in place, although we have seen a bounce in futures early this morning from 19,00. But the surge needs to clear 20,500 to create the first higher high, and then it targets 21,360. Fresh declines head back to 19,000.
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