Technical forecast for US and Euro Stock markets

FTSE could come under pressure and test 6209/04 support again today. Below here a retest of good support at 6179/74 could see us bottom out but on a break look for 6150/45. Exit all shorts for today & buy in to longs for a bounce expected here. 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.

Resistance at 6248 should be hard to over come but above here look for 6266. It should be worth trying shorts here with a stop above 6277 for 6291.

Dax futures went for our target of 7660/70 and topped at 7678. We may see a pullback today with 7604/00 our first support. Below here we have Thurs/Friday lows at 7576/65 which may provide a floor again. However if we continue lower look for excellent support at 7536/26 which is very likely to hold the downside so we will be exiting any shorts and buying in to longs. Stops below 7500.

A break through 7680 today targets 7700/12 where we may top out for now. However above here 7734 is a good target to exit remaining longs & try shorts looking for a top in the early part of the week.

EuroStoxx beat 2626 but could not make it past last Thurs/Friday highs at 2637/41. If we can push higher today we look for 2651. Good chance of a high for the day here but if we keep going look for 2661 then 2671. Sell in to shorts here with a stop above 2677.

If we cannot get back above 2623 we could test 2610/04. If we hold here then we have the making of a bullish reversal pattern & should head higher in to the end of the week. A move below 2597 however risks a retest of 2589/83 lows. This remains good support a second chance to buy in to medium term longs in the hope of a double bottom, with a stop below 2564.

S&P edged higher through 1515 reaching 1517. A push through here takes us towards 1521 later in the week and eventually 1527.

Good support at 1510/09 today but below here look for 1507/06, possibly 1504/03 which should hold a slide today. However 1500 should be a good buying opportunity with stop below 1494.

Dow Jones Industrial Average is stuck in a 13800-13962/75 range getting ready for a break. Although the market is severely overbought & in need of a correction, the longer we go sideways & test 13962/75 , the more chance we break to the upside. A break above 14000 means that the bulls are back in control and we should push on towards 14097 then 14205.
13868/66 should act as good support today. However a break of 13835 could target 13802/13798 next.

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