First support at 11250/240 is the most important of the day

Daily Forecast - 02 December 2015

S&P December contract

Emini S&P will need to hold above 2093/94 to maintain gains & re-target 2097/98. On further gains this week look for August highs at 2104/07. If we continue higher look for a selling opportunity at trend line resistance & November highs at 2109/10. Try shorts with stops above 2114. A break above here would be a buy signal however to target 2120 & July highs at 2126.

Failure to hold 2093/94 targets support at 2088/87, but below here strong support at 2079/78 is a buying opportunity with stops below 2072.

Emini Dow Jones December contract

Emini Dow Jones hold above 17830/840 but strong resistance at 17880/890 remains the main challenge for bulls this week. Shorts again need stops above November highs at 17906. A break higher however is a buy signal despite overbought conditions & targets 18020, 18055 & July highs at 18075. If we continue higher look for 18108/112 then June highs at 18165/179.

First support at 17775/770 again today but below here risks a slide to better support at 17695/685. On a break lower look for 17640/630 & perhaps as far as a buying opportunity at 17575/565. Longs need stops below 17515.

Dax December contract

Dax will need to hold above 11250/240 to keep bulls in control of the 2 month recovery & re-target 11360/370. We need a sustained break above here to build on strong 2 week gains & re-target 11430/440. Despite severely overbought conditions a break higher cannot be ruled out & targets 11464 then 11480/485. This could hold a rally today but above here look for 11530/535.

First support at 11250/240 is the most important of the day. Longs need stops below 11200. A break lower is a short term sell signal in overbought conditions & targets quite good support at 11070/060. A bounce from here is likely on the first test at least, perhaps as far as 11230/240 for a selling opportunity. However be ready to sell a break below 11045 to target a good buying opportunity at 10940/930.

E Mini Nasdaq December contract

Emini Nasdaq not much to stop a retest of the year's high at 4727/29 now. This is the most important level of the day of course & a high for the day always possible in severely overbought conditions. A break & close (preferably 2 days) above here however finally provides some direction & targets levels not seen for over 15.5 years: 4749/51 then 4775.

First support at 4706/03 but below 4700 risks a slide to 4692/90. If we continue lower look for support at 4685/84.

Eurostoxx December contract

EuroStoxx first support at 3475/3470 is the most important of the day once again. A break below 3460 is a short term sell signal & targets 3450 then good support at 3434/30 which should hold the downside today.

Above 3495 is more positive & re-targets 3525 then minor resistance at 3530/32. If we continue higher look for 2 month trend line resistance & much stronger 11 month trend line resistance at 3555/65. This area is the main challenge for bulls this week.

Ftse December contract

FTSE closed above last week's high 6400/05 but strong 5 month trend line resistance at 6425/30 is the main challenge for bulls today. Watch for a high for the day here. It is only a break above November highs at 6438 that is a buy signal again to target October highs at 6467/68. We should struggle here but further gains at 6490.

Although a close near the high of the day is a positive signal, we are severely overbought so there is a risk of profit taking today. Failure to beat strong 5 month trend line resistance at 6425/30 targets 6409/06 then first support at 6396/93. If we continue lower look for better support at 6379/76. Longs need stops below 6365. Look for the next target & support at 6348/45. Try longs with stops below 6330.