Levels to watch: FTSE 100, DAX and Dow
While they have not managed further gains, indices have held up well, avoiding further declines.
Stronger pound hurts FTSE 100
The FTSE 100 has been a notable underperformer, hit by a stronger pound.
The drop back below the 50-day simple moving average (SMA) of 6864 and the close below 6840 support suggests a lower high has been created and that a fresh downward leg is underway. Near-term targets below 6800 lie at 6640 and 6520. Intraday bounces have been sold, so the index needs to clear 6900 to provide a more bullish view.
DAX sits in a range for now
Dips into the area around 11,020 continue to find buyers for the DAX, but the price needs to clear 11,150 to break out of the range that has prevailed over the past three sessions.
From there the price targets 11,300. A fresh decline below 11,000 would head towards 10,900, rising trendline support from the December lows.
Dow trend still up
While the Dow Jones has not made any further upward progress since Friday, dips continue to be bought, as we saw over the past two days. Intraday drops found buyers around 24,300, helping to provide a more bullish view.
The index now needs to break the zone around 24,750, which has held back progress this week. This would then clear the way to the 200-day SMA at 24,987. A close below 24,300 would mark the beginning of a more bearish view.
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