Key levels for major US and European indices
There are lots of levels to watch on the major indices as we close out a busy week.
The E-mini S&P has four-month trendline resistance at 2905, as you can see in the daily chart below. So if we close the week below here we can consider it a false break higher in the middle of this week.
Holding below 2900 today is a short-term negative signal, therefore targeting first support at 2891/90. But below here look for 2882/81 before strong support at 2874/72. Try long positions here looking for a bounce, with stops below 2867.
Holding above 2905 is more positive, allowing a re-test of the all-time high at 2916/17. Above here we look for 2921 and 2925/26, perhaps as far as 2933/35.
The E-mini Dow Jones is still holding the four-month trendline resistance at 26200 in severely overbought conditions.
The E-mini Dow Jones hits a small correction to targets of 26070/050 and 25990/980 before a low at 25946. We meet strong support at 25890/880 and the best chance of a low for the day today. Long positions need stops below 25830. A break lower risks a slide to 25710/700.
It looks like we are in a small but necessary correction phase so gains are likely to be limited. First resistance at 26030/050 could therefore see a high for the day.
Obviously the main challenge for bulls today is the four-month trendline resistance at 26200. However, a break above 26215 (and a weekly/monthly close above here for confirmation tonight) targets 26280, 26310, 26380/390 and perhaps as far as 26415.
DAX September futures could not beat strong resistance at 12550/590 this week.
Yesterday, as you can see in the daily chart below, we gapped just below this area and collapsed through support at 12480/475 to bottom at the next target of 12410/400. Losses were swiftly reversed on the bounce to 12530.
If DAX futures hold below 12480/475 we re-target 12410/400. A break below 12380 then targets 12350/345 before strong support at 12300/290.
A move above 12490 allows a recovery to 12530. Then it is strong resistance from 12550 up to 12585. A break through 12595 (and weekly/monthly close above here for confirmation tonight) is therefore positive but we still meet quite a few barriers: 100-day moving average and two-month trendline resistance at 12630/640 and the 200-day moving average at 12680/690.
FTSE September futures initially bounced from 7495/90 to top exactly at minor resistance at 7525/21 before retesting strong support at 7465/55.
A bounce from here targets 7580/84 with strong resistance at 7498/7503. Further gains meet quite strong resistance at 7525/29. It’s unlikely, but a break higher targets 7545/50 before a selling opportunity at 7560/70.
A break below strong support at 7465/55 is obviously negative, targeting only minor support at the June low at 7422. On further losses look for 7385/81 and 7354/50.
EuroStoxx meeting resistance.
EuroStoxx September futures held strong resistance at 3457/59 this week, as you can see in the daily chart below. We are now trading back below the 50% Fibonacci at 3434/36, which worked as resistance from late afternoon.
If EuroStoxx holds below first resistance at 3434/36 we target 3420 (held yesterday) and strong support at 3415/11. Try long positions with stops below 3400. A break lower is a sell signal targeting good support at 3384/80.
First resistance at 3434/36 held but a move above 3440 meets strong resistance at 3457/59. Bulls need a break above the 200-day moving average at 3466/68 to target 3480 and 3496.
Technical Analyst & Trader
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