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.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
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