Equity markets and commodities have been hit in recent sessions amid fears of China's slowdown becoming deeper than many expect and with that the dollar has found a bid. There are a number of support levels in the US indices which are thus far holding and keeping the bullish trend intact but there are clear warning signs. The dollar will be key in defining the next move for equities, and I have attached a chart of EURUSD which shows that we are nearing a level of significance, 1.283 represents the 200 day moving average and the lower band support of an upward trend for the past few months. Spain and Greece will undoubtedly hog the headlines for the Eurozone, but provided the level mentioned holds in the Euro, equities should find support at current levels, but uncertainty will likely remain as we test the support. For the US, the S&P has good support around the 1428/1429 level.

Philip Ball | Sales and Trading