Dow steady but DAX and Hang Seng keep falling
Dow steady for now
The Dow Jones index stabilised on Wednesday after Tuesday’s sharp drop, avoiding a close below Wednesday’s low.
After reaching record highs last week, the index came under pressure on Tuesday, though there has been no continuation of the losses for the time being. If Wednesday’s low continues to hold we could see another push back to 41,500 and the highs of late August.
A close back below 40,700 would indicate that the drop from Tuesday had resumed and the price was now on course to target the 50-day simple moving average (SMA).
DAX struggles to hold its ground
While the DAX 40 index finished off its lows on Wednesday it has edged lower in early Thursday trading.
Further declines might target the 18,100 level, support from mid-July, while below this the 200-day SMA comes into play.
Buyers will want to see a revival back above 18,700 to suggest that a low has formed and that the price will push back to the recent highs.
Hang Seng resumes its fall
The Hang Seng's pullback from the highs of last week continues.
The price resumed its falls overnight, despite rallying off the lows earlier in the week. A test of the 200-day SMA now looks likely, as the downward move continues.
A close above 17,600 might suggest that a low has formed for the time being, and would put the price back on course to test the recent highs around 17,900.