Technical forecast for US and Euro Stock markets

Dax futures held 7660 on the move lower but we are holding the range of the past 3 weeks in a market that is directionless. Outlook is therefore unchanged for today.

Immediate resistance at 7721/24 then 7750. A break above 7769 should then allow a test of 7795/7805 highs for the month and tough resistance today. 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 to take profit on those longs.

Failure to get through 7724/21 could take us to 7701 and if we continue lower look for 7676/70. Below 7660 we could retest the lower end of January’s range at 7640/32 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.

Eurostoxx has spent the last 3 weeks stuck in a range from 2675/81 up to 2728/29 and held this resistance again yesterday so no change to the outlook yet again. Selling in to shorts in the 2726/29 area has been working well in the last few days. We use a tight stop above 2737 today as a break keeps the 7 month bull run alive looking for 2756 then 2763/66 for some profit taking.

Support at 2700/02 but below here 2693/90 then 2681. 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.

FTSE future broke above 6177/85 and went straight to the next target of 6232/37 and topped out exactly at this resistance.
Support today at 6186 then 6157 below. If we continue to sink look for good support at 6138/34 and the chance of a low for today. We can exit any shorts and try longs with a stop below 6110. A break here could then target 6080/77 for a buying opportunity with a stop below 6064.
Resistance at 6232/37 again today but a break higher could target 6266 next with a push through 6277 then allowing a move towards 6306.

S&P continued higher but failed to reach 1503 as we topped at 1497/98.

The daily stochastic is now indicating we have seen a top for the time being but it is still not wise to fight the uptrend so the picture is mixed and we wait for a more convincing signal. Below 1489/88 we could see 1484/83 trade. Below here look for support at 1479 then 1475/74. If we do not bounce off this level we could see a floor at 1471/70.

Above 1490/91 we can retest 1497/98. A push through here then targets 1503. If we continue higher in to next week we look for 1511 next.

Dow Jones Industrial Average Future broke above 13740 as we stopped out of shorts and bought back in to longs, hitting the
next target of 13799. We topped out just above at 13818.
Support today at 13718/15 but below here look for 13685 then better support at 13656/52. Good chance of a low for the day
here so we look for a bounce but a break lower could then target 13609/05. Below here we have very strong support at
13564/552.
If we see prices back above 13460 we could revisit the 13799/818 resistance area. A push through here today can target 13932
then 13994.

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