DAX 40 shorts at first resistance at 15170/200 worked perfectly yesterday and at last the index broke lower—how long have I been waiting for this move!!?? The break below 15050/15000 was a serious sell signal and exactly as predicted, we collapsed quickly to 14830/800, 14680/650 and almost as far as 14350/300 with a low for the day just 33 ticks above.
EuroStoxx 50 March we wrote: a break below 4060 can retest 4000/3990. A break below here targets 3900/3880. Targets all hit with a low for the day exactly at 3900.
FTSE 100 March could be building a short term head & shoulders pattern. A break below 7400 would confirm and trigger a sell signal with a 200 tick drop the measured target.
Today's Analysis
DAX has very strong support at 14350/300. Longs need stops below 14250. An unexpected break lower however targets strong longer term moving average support at 14050/13950. We could see a good recovery having held important support at 14350/300 targeting 14600/650. If we continue higher expected very strong resistance at 14800/850 today. Shorts need stops above 14900. A break higher can target strong resistance at 15100/150.
EuroStoxx hit a low for the day exactly at important support at 3900/3880. A break below 3860 is therefore an important medium term sell signal initially targeting 3810/00 and 3750/40. Holding important support at 3900/3880 allows a recovery to resistance at 3990/4000. Shorts need stops above 4020. A break higher can target resistance at 4080/90.
FTSE saw a high for the day exactly at first resistance at 7510/30. The index collapsed to 7440/20 and 7350. Further losses meet strong support at 7310/00 today. Longs need stops below 7270. First resistance at 7410/20. Very strong resistance at 7450/60. Shorts need stops above 7490.