Daily Forecast - 07 May 2014
Eurostoxx June contract
Euro Stoxx has held for 4 months just below strong longer term Fibonacci resistance at 3185. A SIGNIFICANT MOVE TO THE DOWNSIDE IS LOOKING INCREASINGLY LIKELY AND COULD BE IMMINENT. I think the Nasdaq will lead global stock markets lower throughout the summer & a crash is not out of the question.
Yesterday we dropped back to that key 3101/3097 level. A break below today hits the 2 week low at 3083/80. Below adds pressure & targets the next key level of 3070/66. A close below is negative & targets 3054 then 3042 before the next key level at 3015/10.
Immediate resistance at 3123/26 then 3135/36 & 3148 before a retest of 3156/58 April/May highs. An unexpected break higher could then retest important double top highs from January & April highs at 3175/78. Exit longs & try shorts but with wide stops above 3198. Bear in mind we need to at least see a daily close above 3185 to confirm a bullish breakout.
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