FTSE June Contract
4414 was attained yesterday and buyers were the main winners. 4414 was the high and this morning you should expect some pullbacks from these higher levels just to ease the overbought conditions of the charts.
You have support at 4346 from the first fib level and this should be attained quite early on. Short covering will occur and buyers will be waiting here also. If this support fails however 4314/10 would be the next level that sellers will push down to. Buyers once more will be waiting.
Now if the market holds fast and only retreats slightly to 4388/67 buyers will soon get their breath back and grab Ftse and push through the 4414 resistance for 4430 immediate target. Above 4430 sees further buying pressure with 4471 then targeted.
Dax June Contract
After starting lower, buyers soon took control and heaved this higher wiping away sellers in their way until reaching 4953. Profit taking and small selling eased this slightly lower, but the close and the underlying strength of the buyers will soon have this making new highs again today.
Above 4956 keeps the market in good position with 4988 looking to be your immediate target. Here buyers may pause for break as they unwind longs. However it will not be long before they start the process once more and above 4990 leaves the 5034 resistance as the targeted area.
If weakness if seen first thing, the downside looks to be contained by 4888 initially. Buyers are expected to hold fast on this support. However if this region is lost look for the market to come lower with 4854/50 your first short term fib level. Buyers should not let this support be lost and will defend it strenuously.
Eurostoxx June Contract
Eurostoxx traded sharply higher, and the strong close suggest buyers want more of the same today. However this is extending into overbought territory and at some point will need to correct.
If above 2445 you are looking at 2455 as your short term objective. Here buyers will take profits and it may give a chance for sellers to have a say and move the market down to its first retracement target of 2397. Buyers will be watching and waiting to pounce on any glimmer of weakness by sellers and given any excuse they will off and away again. However if 2397 gets broken by strenuous selling pressure look for 2388/80 to hold the move lower. Buyers would only be worried at this stage if below 2377.
If there are no pullbacks and buyers continue in this stronger vein and break the 2455 resistance look for 2469 as the next targeted area. Profit taking will occur. Only above 2473 would buyers re-enter the market for 2484/89.