S&P December contract
Emini S&P levels are working with big profits on scalping trades. We bottomed exactly at 2713/11 & shot higher to the 200 DMA at 2768/66. We topped exactly here & risk a slide back to 2742/41, 2738/37, 2733, 2730/29, 2724, 2721/20 & perhaps as far as 2713/11. On further losses look for strong support at 2702/00.
First resistance at 2766/69 is key to direction this morning of course. Above 2780 re-targets strong resistance at 2797/2800. Again, watch for a high for the day. Shorts need stops above 2810. A break higher targets a selling opportunity at 2825/28, with stops above 2835.
Emini Dow Jones
December contract Emini Dow Jones then collapsed through the 200 DMA support at 25140/120 & August low at 25960 for a sell signal but bounce from 24895 to 25350/370. First resistance at 25375/395. Above 25450 targets 25510/520 & strong resistance at 25675/695. Watch for a high for the day. Shorts need stops above 25800. A break higher targets 25920/940 then strong resistance at 26155/175.
Failure to beat first resistance at 25375/395 targets 25200/190 & 25090/070 before the low this week at 24900/890. On further losses look for 24810/800, perhaps as far as 24690/680 & 24610/600.
Dax December contract
Dax 200 week moving average at 11420/400 is obviously key to direction. Holding above 14 month trend line (& the neck line to the head & shoulders) at 11510/530 (revised lower) is more positive targeting first resistance at 11620/640. Shorts need stops above 11690. A break higher targets 11770/790. Shorts need stops above 11860. A break higher again targets 11900/920 & 11980/999.
A weekly close below 11420/400 tonight is serious sell signal. We could quickly target 11250/230, 11150/140 & 10950/930 next week as stops are triggered but further significant losses would be expected in to the end of October.
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