Technical forecast for US and Euro Stock markets

Dax futures headed towards our target of 7896/7906 to take profit on longs but halted a little early at 7888. The new high followed by a lower close is an early warning that this market may be running out of momentum and could lead to profit taking today, but there is no sell signal yet. Therefore buying in to weakness may be still be the safest strategy. Support today at 7835/33 but below here look for 7802. We should see a bounce from here and possible low for the day but a break targets 7776 and maybe the 9 day moving average and short term 61.8& Fibonacci support at 7749. This should be a very good buying opportunity this week.

Yesterday’s high should act as resistance again and then we should finally hit our target of 7896/7906. This may hold the top for now but a push through here would see us on the way to 7930/33 and then 7988/96.

FTSE future finally hit our target of 6266 and has continued higher towards 6277 then 6306 is the target above today.
The 7 month bull market shows no sign of topping just yet so we can be buyers on any weakness down to 6233. If this level fails however look for 6209 next, possibly 6189 with 6170/65 likely to provide an excellent buying opportunity if seen this week.

Eurostoxx made it to our 2756 target, topping at 2755.

We are getting over bought in the short term so we could drift lower now with 2736 the first target but 2724 is achievable today. Doubtful we go any lower but a break of 2715 should provide a buying opportunity at 2705.

A break above 2755/56 is looking less likely today but would allow a move to 2763/66 and if we continue on look for 2783 then 2799 this week.

S&P hit the magic 1500 round number and came to a halt below the target of 1503. The market is drastically overbought but has been for 2 weeks and this in itself is not a sell signal. It does mean bulls need to be cautious though and the psychological 1500 barrier can always trigger profit taking. A move back to support at 1490 would not be a surprise therefore and perhaps even 1485 but this should present a good buying opportunity today with the market unlikely to fall any further at this stage.

1500/1503 is resistance today of course but if we do continue higher this week, the door opens for 1511 next.

Dow Jones Industrial Average Future is edging very slowly high as we battle drastically over bought oscillators as we hit13859.
A push through here today can target 13932 then 13994 this week.
Support on a pullback is seen at 13777 then 13727. We would look for a low for the day here if tested but a move through 13686
could then target better support at 13645.

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