Daily Forecast - 24 October 2014
Mini Russell 2000 December contract
Mini Russell unexpectedly beat 1113/15 but shorts from this level were not stopped above 1120. An unexpected break higher today however targets 1124/25 & possibly 1130/31. Exit longs & try shorts expecting a high for the bounce in the bear trend.
Sooner rather than later we expect the bear trend to resume. Downside pressure today targets 1110/09 then good support at 1101/00. Failure here however then targets 1095 & 1089/88. A good chance of a low for the day if we fall this far but be aware a break lower targets 1081/79.
E Mini Nasdaq December contract
E-Mini Nasdaq unexpected break higher beat 4010/12 to reach 4024 but we have backed off sharply. We are overbought now & could hit profit taking. If we hold below 3985/83 this should trigger a move towards 3959/58 & perhaps as far as key support at 3945/43. A good chance of a low for the day but longs need stops below 3939. Be ready to go with a break lower to target 3911/10 then 3905. Any further losses meet good support at 3895/94 & a bounce from here likely at this stage.
Holding above 3985 is more positive & may allow a retest of yesterday's high at 4022/24. A break higher meets strong resistance at 4033. Try shorts with stops above 4040. A break higher again then targets 4047/48.
Emini Dow Jones December contract
Emini Dow Jones held support at 16420/410 & unexpectedly beat 16560/570 to hit our next target of 16690/16700. Prices topped exactly here & being severely overbought now we should turn lower. Already we have hit support at 16515/510 but below here targets 16480. If this does not hold the downside look for a move towards 16380. Good support from here down to 16350 but any longs need stops below 16320. A break lower could then target 16245.
Immediate resistance at 16600 but above here we could retest 16690/16700 for a selling opportunity with stops above 16750. A break higher however could target 16780/85 then 16860.
EURUSD
EURUSD became severely oversold short term & bottomed at 1.2612. A short term bounce halted below resistance at 1.2688/93 however. Immediate resistance at 1.2686/92 again today but be aware a break higher targets 1.2730/40 for a selling opportunity with stops above 1.2760.
Outlook remains negative in the bear trend. A break below immediate support at 1.2620/12 keeps the market under pressure to target 1.2605/00 then 1.2585/80. If this does not hold the downside in the bear market, look for 1.2550/45 then a retest of October lows at 1.2500.
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