Stock markets bounce. Where next?
Stocks headed higher into the end of last week after a strong nonfarm payrolls number and the indication of a slower pace for US rate rises. So what’s next?
The E-mini S&P 500 finally beat strong resistance at 2510/20 and minor resistance at 2535/40 as we headed towards strong resistance at 2556/59. We should struggle here but we may only pause. Short positions could be risky. A break higher targets minor resistance at 2571/74. On further gains look for 2582/84 then 2592/94.
A move below last week’s high at 2540/38 targets 2528/26 and support at 2517/12. Long positions need stops below 2505. There is minor support at 2493/90 but below here we target strong support at 2470/67.
The Nasdaq 100 hits strong resistance at 6470/80. Short positions need stops above 6520. It is entirely possible that this is the high of the bounce in the bear trend. A break higher, however, targets 6550/55. On further gains look for 6582/84 then 6590/94.
Failure to beat 6470/80 targets 6444/41, then 6425/23, before support at 6410/00. On a move below 6390 look for 6377/74 and 6360.
Dow and DAX
The E-mini Dow Jones meets key resistance at 23600/620. Short positions need stops above 23700. A break higher targets 23870/890.
Failure to beat key resistance at 23600/620 targets 23510/500 and support at 23400/380. Holding below 23350 adds pressure for 23150/140. Moving below 23100 risks a slide as far as 22900/860.
The DAX 30 runs into first resistance at 10950/11000. But the strong seven-and-a-half-year trendline resistance at 11140/160 is the best selling opportunity with stops above 11240.
The first support at 10810/800 is minor but below here we target 10780/760, before better support at 10700/690. This is the best chance of a low for the day but long trades are always risky in a bear trend. A break lower again targets 10650/640, then a buying opportunity at 10600/580. Place stops below 10550.
Technical Analyst & Trader
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