FTSE June Contract
Ftse came higher from 3902 to 4012 but suffered selling pressure on the close back to 3936, closing at 3944.
Now buyers will be a tad put out by this turn of events and this morning they are expected to push the market higher with 3957 as the first port of call. Buyers may take profits here or let sellers install positions then squeeze them out for 3967/71. Buyers will take profits however to these higher levels. Sellers may feel the need to get in here, but feel they would rather wait for the official close of 3987 before jumping in and selling, it gives them more leverage as they will not start to panic unless above 3996.5. This level breaking sees buyers gleefully shaft the sellers and they will push it up to 4016/4022 without a moments hesitation. Buyers will take profits here and only really be interested if the market breaks 4022.
Now if buyers cannot make headway past 3957 look for sellers to appear as if by magic and move this lower for 3907/02. Profit taking will occur. Below 3900 sees further sellers enter the fray leading FTSE down to 3845 minimum target.
Dax June Contract
Dax traded higher for most of the session, but faltered on the topside with sellers getting their way to close at 4550. Now this has closed right on the short term 50% fib level, and today the buyers should be out supporting this level.
Would expect rallies from this point at least back to yesterdays highs of 4624 which is again one of your short term fib levels. At the higher end of the scale sellers should be out in force and looking aggressive as they try and halt the advance of the buyers. Profit taking may also help the sellers cause thus leading this lower with 4550 once ore your targeted area. Only above 4624 would sellers be panicking as then you would expect the buyers to advance to 4699/4703.
However if the sellers feel 4550 is enough for them they will try once more to force the market lower for 4470/64. Short covering will be evident at these lower levels. Buyers will defend, and only re-think if the sellers brush this support aside as they will then be heading for 4454 then 4430/21.
Eurostoxx June Contract
Eurostxx eased down to 2144 on the open then buying pressure was evident thrusting the market to 2229 before easing on the close back to 2185.
So we are back to the 2183 support. Buyers should once more be defending this support, and thrusting forward with 2217/2220 once more in their sights. Buyers will profit take at these higher levels. Sellers will again test the water, leaving a little more room on the topside for their get out trades. If above yesterdays highs of 2229 sellers would have a problem and buyers will take the reins moving it up to 2239/43. If buyers wish, profits should be taken. If above 2245 look for further strength to the recent highs of 2278/81.
Back below 2183 sees sellers win through and 2154 to 2144 will once more be the short term objective. Short covering will occur here. Buyers will defend, but if 2140 breaks sellers will rule the day once more leading this to 2116/131.