Major international indices have recently experienced sharp declines due to concerns over potential recessions and US tariff threats. Below is an in-depth analysis of recent movements in the FTSE 100, DAX 40, and S&P 500 indices.
FTSE 100 Drops to Six-Week Low
- The FTSE 100 fell to 8,464 on Tuesday, marking its lowest level in six weeks, just above the 8,427 low seen in late January.
- If this key support zone (8,419 - 8,389) is broken, further declines may follow. This zone has historically provided strong resistance-turned-support between July and December.
- Upside resistance: The 55-day Simple Moving Average (SMA) at 8,532 acts as an initial resistance level, with further resistance near 8,614 (late February low).
DAX 40 Holds Above Support Levels
- The DAX 40 dropped significantly to 22,239, close to the late February low of 22,212.
- Key support zone: This includes 22,114 (February 21 low). If breached, the 21,802 level (late January high) may provide backup support.
- Resistance levels: The February 26 high of 22,829 presents minor resistance, while a further upward push could test 22,937 (February peak).
S&P 500 Trades at Six-Month Lows
- The S&P 500 made a slight recovery from its 5,527 low on Tuesday.
- Potential resistance: If this level holds, a retest of the 5,674 - 5,696 zone (lows from October-November 2024) is possible.
- Downside risk: A daily close below 5,527 could lead to a further decline toward 5,091 (August 2024 low).
Key Factors Driving Market Volatility
- US Tariff Threats: Concerns over potential US tariffs continue to disrupt global markets, increasing investor uncertainty and market volatility.
- Recession Fears: Growing apprehensions about a possible US recession have led to cautious trading, as economic indicators signal slower growth.
- Technical Support & Resistance Levels: Traders are closely watching key technical levels to determine market trends and trading strategies.
Outlook for Traders and Investors
With markets remaining unpredictable, traders should closely monitor central bank policies, economic data releases, and geopolitical events. Tracking technical levels in key indices can help identify potential entry and exit points.
Conclusion: Navigating Market Lows with Confidence
As global indices respond to economic and geopolitical pressures, traders need to stay informed to adjust their strategies effectively. Understanding key support and resistance levels, alongside broader market trends, is essential for making calculated trading decisions.
At KQ Markets, we provide expert insights to help traders stay ahead. Whether you're trading indices, forex, or commodities, staying updated can improve your investment approach.
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