Technical forecast for US and Euro Stock markets

EuroStoxx managed to stage a recovery breaking 2644 but fell just short of the next target of 2665 as we topped at 2661. The daily outlook remains weak so a retest of the 200 week moving average and Monday’s low at 2610/05 is possible today. A break lower targets 2589/83 which is much better support and here it should be wise to exit any shorts. We could see a low for the week so we can try longs with a stop below 2570 for 2550.

Resistance at 2644 with a push through here able to test 2661/65. We could top out here again today but above here look for 2682. If we continue higher 2699 should present a good selling opportunity.

FTSE managed a recovery to the 6255/59 level as we topped at 6557. It looks unlikely we can go any further but look for resistance at 6274 above and a possible high for the day. Should be worth trying shorts here with a stop above 6296 for 6307 then 6323 highs.
6225 is our first support level but below here we could retest the week’s low at 6195. If this breaks 6179 is our first target but there is scope for a move as far as 6150/45. This however is very good support for today and so a bounce could be expected here. Any longs will need a stop below 6130 for a test of 6095. If we do not bounce from here then 6041/35 could be the next downside target.
04:36:00 JASON SEN : Dax futures managed a small recovery reached the first target of 7661 but failed below 7699. Good chance of a high here today if tested but above here 7729, possibly 7759 can be achieved.

Below 7640 we could test Monday’s low at 7600 and a break should keep us under pressure for 7565/60 where it may be worth exiting at least some shorts. Below here better support at 7528 and it could be worth attempting longs down here as we look for a low for the day and possibly for the week. However if we are unable to bounce from here the next target is 7450/40 presenting a very good buying opportunity with a strong bounce likely.

S&P pushed higher than expected to retest 1510/11 highs. We backed away quite sharply so clearly there are sellers at this level again. A double top pattern has been left. It is low risk now to enter shorts here as we use a tight stop above 1513 but below 1506 the downside potential is 1500/99 today. Looking out to the rest of the week if we break 1499, this topping pattern targets 1494 and then 1490/91. A break below here will then confirm a move to 1486/85 on the way to 1481/79 but the over all target for the correction will be 1470.

A break above 1513 however keeps the bull running to 1515 then on to 1521 and then 1527.

Dow Jones Industrial Average Future pushed higher than expected to retest 13945 highs but halted here to form a double top. It should be worth trying shorts here as we can use a stop above 14000 but there is potential for a move back to 13899 then 13864 and below here 13830 which should hold the downside for today. However a break of 13800 confirms the double top for a target of 13750 in the weeks ahead.
A break above 14000 however means that the bulls are back in control and we should push on towards 14097 then 14205.

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