Technical Forecast for US and Euro Stock markets
EuroStoxx remained under pressure to target the week’ low at 2612/10 as expected.
A move below 2597 today risks a retest of 2589/83 support & a second chance to buy in to medium term longs in the hope of a double bottom, with a stop below the 7 month uptrend line at 2570.
Immediate resistance is 2616 but above here 2626/28 should be a struggle. If we manage a push through here we could reach 2641/43, possibly 2652.
Dax futures held resistance at 758/61 as expected & hit the 7579/76 target & low for the day as predicted, bottoming at 7570.
We watch for a break today to take us towards Feb lows at 7536. Good support from here down to 7525 should be a bargain buying opportunity but we need a stop below 7510 for a test of 100 day Moving Average at 7470.
The top side looks limited with resistance at 7611/14 then 7637 & 7658/61 likely to hold any strength again. However above here 7691/96 is another tough obstacle but a break allows another test of the recent high at 7728/39.
FTSE support at 6270/65 but below here, a buying opportunity at 6246/40. This should hold the low today so expect a bounce but be ready to stop out below 6225 for 6214.
If we can hold above 6290 look for a test of Fibonacci resistance at 6318 then Friday’s high of 6328. On a push through here we should see 6343, possibly last week’s high of 6359/62 which should hold again this week, to try shorts with a stop above 6370 for a 6396 target. Exit longs here and try shorts with a stop above 6405. Above here there is little to stop a run to 6500/05.
S&P has formed a small bearish double top but bounced off 1510/09 support on Friday. This level is very significant being the 5 week up trend line today as well as last week’s low. A break below here is possible & more importantly confirms the topping pattern for a move to 1506 & even 1502 would not be a surprise this week. The measured target by the end of the month is 1489.
Resistance at 1521/22 of course & this held on Friday as expected. Highly unlikely but if we do find the strength to push through 1523 we should reach for the next target of 1527. These are the highs of Dec 2007 would you believe, in what is becoming a dangerously over bought market.