Technical forecast for US and Euro Stock markets

EuroStoxx climbed steadily through the day to break our upper resistance 2652 & head for last week’s high at 2668. So 2668/2671 is the main obstacle this morning. We also have various time period Fibonacci levels here, Bollinger bands & 21 day moving average plus 9 week MA just above at 2676 so it is only above here that bulls can relax again & target 2690/93. The chance of a high for the day here but if we push on there is little to stop a move to 2716/19.

Support at 2651/50 could hold a drift lower but below here look for 2639, possibly 2630/27 but doubtful we go any lower now that the daily outlook has turned bullish.

Dax smashed through all resistance reaching 7765. We now face quite tough trend line & short term Fibonacci resistance at 7780/87 but with the daily picture now much more positive, if we can clear 7800 we should see 7835/38 then 7856.

Support seen at 7720 then 7696/91 below could hold a slide. Below here 7658 looks a good buying opportunity with stops below 7640.

FTSE broke 6318 to test 6359/62 which did hold the move as expected. However we have good upward momentum & a break above 6370 is possible, to trigger stops on any shorts for a 6396 target. This takes us back to the high of mid 2008. We could look quite over bought at this stage so it may be wise to exit longs here & if trying shorts we need a stop above 6405 for a run to 6500/05.
If we fail to beat 6360/65 now we should test support at 6344 then below 6330 we have strong support at 6321/20. We look for a low for the day here but longs need a stop below 6307 for 6295/92 & another buying opportunity.

S&P is unstoppable as we rally for the 8th consecutive week. We broke 1521/22 to hit the next target of 1527. These are the highs of Dec 2007 but we are pushing on this morning with 1533/35 the next resistance. You cannot rule out a move above here for 1541/43 then 1548/51.

Support is clearly 1522/21 but below here risks a move to 1516/15 which should offer a nice chance to buy into longs with a stop below 1511.

Dow Jones Industrial Average crawled through 14000/005 but only reached 14023. A push through here should allow us to push on towards 14097 then 14205.
Support today is at 13970 but below here 13938 should offer a buying opportunity with a stop below 13900.

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