European major indices close lower.

European indices are ending the day down as the aftermath of the elections continue to bother investors. France will have trouble forming a government given their mix. The UK Labour take charge after 14 years of a Tory rule.

Uncertainty in lead to selling and that is what we’ve seen in the equity market today in Europe.

The final numbers are showing:

• German DAX, -1.28%
• France CAC -1.56%
• UK FTSE 100 -0.65%
• Spain’s Ibex -1.2%
• Italy’s FTSE MIB -1.12%

Looking at the daily chart of the France’s CAC, the price today gapped below the 200-day MA at 7632.51, and stayed below that MA for the entire trading day. The low price from June reached 7456.47 and will be the next key target.

This article was written by Greg Michalowski at www.forexlive.com.