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Key levels for major US and European indices

Jason Sen

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.

Jason Sen

Technical Analyst & Trader

For more information and trading education visit InterTrader

The content of this article is the personal opinion of the author and not InterTrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.

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