- DAX 40 JUNE finally reaches the target and strong resistance at 14750/850. Shorts need stops above 14950. We just held this level yesterday before a dip to 14780 this morning.
- FTSE 100 JUNE made another push higher but again there was a pullback into the close. We have a series of candles on the daily chart with long upper wicks, indicating that there is strong selling pressure at the end of the day. This can be quite a negative signal, but of course does not tell us when the market will turn lower.
Today's Analysis
DAX was finally testing strong resistance at 14750/850. Shorts need stops above 14950. A close above here tonight is a (surprising) buy signal targeting 15200/220, perhaps as far as 15400. Shorts at 14750/850 target 14600 and minor support at 14550. We should at least pause here on the downside. If we continue lower look for strong support at 14350/300 for some profit taking.
FTSE moved higher again to the next target of 7510/30 with a high for the day just 11 ticks above. It is possible that we continue to crawl higher and ultimately reach the February high at 7610/30. However I feel the index is running out of steam. First support at 7470/60, with better support at 7430/20. A break lower meets strong support at 7360/40. A bounce from here looks likely, but longs need stops below 7320.
Video Analysis