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DayTradeIdeas

Dax, FTSE, Eurostoxx & S&P Daily Technical Forecast

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Eurostoxx tested the 200 week MA and Oct high at 2575/78 and blipped higher to 2582 in the afternoon but could make it no further.

If we beat 2582 today this should lead to a test of 2012 highs and the big double top at 2602/07. Clearly this is a very significant level and with the market overbought on daily and shorter term charts there is a strong chance of a high here for this 2 week recovery. We have to attempt shorts here with a stop above 2613. We then run in to the 61.8% retracement level of the losses from the highs in 2011 at 2638 and this therefore should be very tough resistance. Attempt shorts once again with a stop and reverse in to longs above 2650.

Support at 2567/66 but below 2556 we could test better support at 2546/43. A low for the day here is very possible so worth covering any shorts but if attempting longs we need stop/reverse in to shorts below 2532 for a move to 2521/19.

 

FTSE broke 5859 but has so far failed to test the Oct/Nov highs at 5903/07. With the market no overbought on daily and shorter term charts we may not each this far as profit taking sets in. A move below 5855 signals weakness creeping in and should see last

weeks high at 5837 then possibly 5820/15 support tested. Watch for a low for the day here so exit any shorts but if we try longs here we need stops below 5804. Sell in to shorts on a break here as this could keep the market under pressure for 5783/73.

If we manage to push through 5886 we run in to the Oct/Nov highs at 5903/07 and a good chance we go no further. However if we do continue on through here the Sept highs of 5933 could be the next stop.

 

Dax broke trend line resistance at 7409 but the move was limited to 7418 as the market starts to look over bought on daily and shorter term charts.

Even so we cannot rule out a break above yesterday’s high to test October & November highs at 7440/49. We should struggle here so worth exiting any remaining longs and moving in to short positions up to the 2012 highs at 7476. We will be looking to stop out of shorts however and buy back in to longs on a break above 7500.

Support at 7382 then 7360 is the target below. Failure here sees us drifting further towards 7341, possibly 7323. Exit any remaining shorts here and look to buy in to longs on a move towards 7310/07. Stops on longs needed below 7295. Look to sell back in to shorts then with a move to 7270/65 likely.

 

S&P did break 1416 but only made it as far as 1418. This is 55 day MA as well as the high for the first half of this year. The market is overbought now on the daily and shorter term charts so there is a risk we make it no higher now and start to hit profit taking.

1410 is the level to watch as a break below here sees us back towards 1407/05 and the 100 day moving average. We then find good support at 1401/00 and a probable low for the day if tested. If attempting longs here we need a stop/reverse in to short positions below 1395 for 1390/88.

We are in a very strong 2 week up trend so we cannot rule out a break above 1418 for a test of the 1423/25 resistance level. This should be very tough to beat so worth exiting longs and trying shorts with stops above the Nov highs at 1432.

eurostxx.pdf

Dax.pdf

Ftse.pdf

S&P.pdf

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I've been pretty bullish on the S&P 500 and this was met with some criticism here on Seeking Alpha. Anyway, it's not just the S&P that has me excited, but also the German DAX (DAX). As of late, speculators have been switching their focus from Europe to the U.S. with an occasional glance at what is happening in the third largest economy on the planet.

 

Germany leading growth in the eurozone

 

Germany is the three hundred pound gorilla in the eurozone. While it is true that GDP dropped in Germany, the thing that eurozone investors will find encouraging is the positive statements coming out of the Bundesbank. The Bundesbank and German ministers have estimated that Germany will grow over 0.5% in the first quarter of 2013.

 

Read the rest of the article here: DAX Will Reflect German Economic Power In The EU - Seeking Alpha

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