The FTSE100 chart gives a ‘Death Cross’ signal, while US Market Futures remain undecided ($SPY $DIA #FTSE100 #DAX)

By James Moore

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In London, the FTSE 100 chart has provided a ‘Death Cross’ signal.  This occurs when a longer term Moving Average falls below a shorter term one, and today the 50 DMA has fallen below the 200 DMA on the FTSE 100.  As the name suggests, it’s a very negative signal and is often followed by a downward market trend.

In the US, the Dow Jones and S&P 500 futures are hovering around yesterdays close with minimal movement.  Both have found a level of support just below their 200 Day Moving Averages.  Whilst this offers a moment of calm, we will need to wait and see if this consolidation becomes an area of entrenched resistance or a potential support level.

Back nearer to home, the German DAX is up almost 1% after initially dipping 2% earlier. It’s clinging on to support around the 12,000 level.  This is quite a key zone retest as it’s this area that offered support during the initial correction back in February.

Author: Stuart Langelaan

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Author: James Moore

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.