Technical forecast for US and Euro Stock markets

Dax futures have been stuck in a 90 point range since the start of the month as we unwind overbought indicators and we could remain in this range for a while longer. 7769 could not be beaten yesterday as expected but if we do push higher today look for 7795/7805 highs to be tested. Exit any longs and try shorts with a stop and reverse in to longs again above 7815 for 7826 and above here a run to 7896/7906.
Support at 7724/21 but below here we could drift to 7701 and if we continue lower look for 7676/70. Below 7660 we could retest that 7640/32 support area for exiting any shorts. Try longs again with a stop below 7620 for a test of good support at 7603/7593 and an excellent buying opportunity.

FTSE future edged higher but has not triggered stops out on a break above 6157 as we have topped so far at 6153. If this does occur look for a move to 6177/85 and then 6232/37.
The market is very overbought on daily and shorter term charts so a pull back on profit taking would not be a surprise. This should target 6126 initially but there is scope for a test of the break point at 6110/05. Watch for a low for the day here but longs will need a stop below 6095 for a move towards 6080/75 and a good buying opportunity.

Emini S&P edging through last week’s high at 1481 but has only reached 1484. If we can keep going through here expect further strength towards the next target of 1489. Above here we can then push on to 1503 and probably as far as 1511 to take profits on longs. If we continue higher later in the week look for 1527/20 on the way to 1527.
1478 is support then 1475 below which could hold any weakness. However below here look for 1472 then 1469 for a buying opportunity. Next support level is 1465 then 1460 could hold the downside this week if seen.

Eurostoxx has spent the last 12 trading sessions stuck in a range from 2675/81 up to 2728/29. Friday’s failure to break Monday’s 2729 high plus the lower close indicates a loss of momentum to the upside. We also made a new high last week but closed lower on the week which is not positive.
The daily chart is looking more negative now. A return to 2700/02 is possible and below here should see us back at 2681. Again a good chance of a low here today with the risk we hold in a range but longs need a stop below 2675 for 2666 then possibly 2656/51. This is strong support so should offer an excellent buying opportunity. Stops needed below 2640. Shorts need a tight stop above 2737 as a break keeps the 7 month bull run alive looking for 2756 then 2763/66 for some profit taking.

Dow Jones Industrial Average Future is struggling with overbought indicators as we edged higher to 13614 and drifted back.
13600/614 should remain an obstacle but a break above here means the overbought situation needs to be ignored and challenge of the 2012 high at 13717 is then likely this week.
Support today is seen at 13562 then 13529/523 is likely to provide a floor. However below 13500 look for a buying opportunity at 13478/468 with a stop below 13440.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More