Emini S&P key to direction today is obviously 2009/11

Daily Forecast - 18 December 2014

E Mini Nasdaq March contract

E-Mini Nasdaq March bottomed just 4 points below strong support at 4090/4085 to signal the end of the December correction as expected & beat 4140/4145 for another very positive signal to quickly target 4165 as predicted. A break above yesterday's high at 4173 targets strong resistance at 4184/4187 today. This is the biggest challenge for Bulls, but shorts need stops above 4195. A break higher is very positive and should then see 4185 work as good support for a move towards 4208/4212. It could be worth trying shorts here with a stop above 4220.

Immediate support is at 4145/4142 and is worth trying longs with a stop below 4132. Below here. However risks a slide to 4120/4115. Any longs here need a stop below 4105 as this could trigger further losses down to good support at 4095/4095. Try longs at 4090/4085 with a stop below 4075.

Mini Russell 2000 March contract

Mini Russell now testing resistance at 1172/73. Be ready to go with a break above here to target 1177/78 then last week's high at 1182/84. A good chance of a high for the day here but shorts need stops above 1189. Be ready to go with a break higher again to target November highs at 1200.

Failure to beat resistance at 1172/73 should trigger a move lower towards support at 1164/62. This should hold the downside initially at least but on a break lower look for a test of the next target & support at 1158/56. Try longs with stops below 1152. Try longs again at 1147/45, with stops below 1141.

Emini Dow Jones March contract

Emini Dow Jones immediate resistance at 17,330/17,360 today of course. We should struggle here but the outlook is positive, so break higher would not be a surprise and we should target very strong resistance at 17,395/17,405. This is the big challenge today and may even be worth trying shorts, despite the positive outlook, with a stop above 17,440. Be ready to go with a break higher using 17,400 strong support to target 17,500/17,520. Exit longs here and try shorts up to strong resistance at 17,550/17,560, with stops above 17,600.

Failure to beat resistance at 17,330/17,360 triggers a dip back to 17,275/265 then good support at 17,210/17,190. Try longs here with a stop below 17,150. A break below here however then targets very good support at 17,080/17,060.

Ftse December contract

FTSE outlook remains positive & will now need to hold above the important short-term support at 6370/6365 to build on recent gains. Be ready to go with a break above 6395/6400 to target 6415/20 then resistance at 6435/6440. A high for the day is possible here, as we become overbought in the short-term, but if trying shorts use a stop above 6450. Be ready then to go with a break higher using 6440 as support to target 6464/6468 then 6480/6490. If we continue higher look for a very strong resistance at 6505/6515. Try shorts expecting a high for the day with a stop above 6530.

Immediate support at 6370/6365, but longs need stops below 6350 as this risks a test of support at 6325/20. Longs here need a stop below 6300, as we could then test very strong support at 6275/6272. Try longs here expecting a low for the day with a stop below 6250.

Dax December contract

Dax did hold above 9420/00 perfectly yesterday & beat the 200 DMA at 9533 reaching our Fibonacci target at 9655/9660. In fact we topped almost exactly here 9673. Outlook remains positive but we must beat 9660/9670 to target strong resistance at 9705/9715. This big challenge for Bulls, as we become overbought short-term. Shorts need a stop above 9735. Be ready to go with a break higher using 9715/9705 as strong support to target 9760/9765. A good chance of a high for the day but shorts need a stop above 9790. A break above 9800 is another positive signal & we should target 9835/9840 then 9865/9870. We could then even reach as far as 9895/9900 this week.

Below 9600 may trigger a little profit-taking down to 9578 and possibly as far as good support at 9555/9545. Try longs here with a stop below 9520. However be ready to go with a break lower using 9545/55 as resistance to target 9510/05 and perhaps as far as excellent support at 9445/9440. Try longs with a stop below the 100 day moving average at 9400.

S&P March contract

Emini S&P key to direction today is obviously 2009/11. It looks like we ended the correction yesterday & will need a break above here today to continue the recovery & target 2016/2017 then 2025/2026. Any further gains meet strong resistance at 2029/2031 today. A high for the day expected but shorts need stops above 2035.

Failure to beat 2009/11 should trigger a move lower towards 2000/1999 & perhaps as far as good support at 1994/1992. A low for the day possible so try longs with stops below 1986. However be ready to go with a break lower using 1992/1994 as resistance for a move towards 1981/80.