Emini S&P has now tested the August & 2015 lows at 1831

Daily Forecast - 20 January 2016

Emini Dow Jones March contract

Emini Dow Jones tested quite good support at 15550/530 & bottomed exactly here. THERE IS A GOOD CHANCE WE HAVE JUST SEEN A LOW FOR THE DAY & FOR THE CORRECTION AT THIS STAGE. As I write we have bounce to 15638. If we continue higher look for resistance at 15730/735. We should struggle here & a high for the day not out of the question, but if we continue higher look for the next target & resistance at 15855/865. No further gains expected today. Try shorts with stops above 15895. A break higher then targets 15960.

Good support at 15550/530 is holding. Failure here however could target 15460/450. If we continue lower look for 15385 before very, very important August mini crash lows at 15285/275.

S&P March contract

Emini S&P has now tested the August & 2015 lows at 1831. *Obviously this is the most important support of the week & there is a chance of a low for the correction here once again.* A break below here however is a strong sell signal but we do need a close below to confirm. This is likely to trigger sell orders targeting 1818/17 & 1808/07, perhaps as far as April 2014 lows at 1804/03.

As I write we have bottomed almost exactly at the August & 2015 lows at 1831. The expected recovery has reached 1839 but above here look for 1849. From here up to resistance at 1852 looks like a potential high for the day. Shorts need stops above 1858. A break higher sees 1853/52 act as support to target 1866/67. Shorts need stops above 1871.

Eurostoxx March contract

EuroStoxx has broken lower as far as targets 2880 & 2863. We bottomed exactly here at 2861. Be aware that although this is not an important support the Dax & Emini S&P have tested August mini crash lows & held. Therefore a recovery is now possible & initially targets 2900. If we continue higher look for resistance at 2922/23. We should struggle here with a good chance of a high for the day. However A break above 2930 keeps bulls in control to target a selling opportunity at 2960/65.

Failure to hold above 2830 however risks a slide to quite good support at 2848/44. However further losses could target 2825/23.

Dax March contract

Dax has tested the most important support of the week at 9317/9301. This is the September/August double bottom low & the last line of defense for bulls now. As I write, we have bottomed exactly here. THERE IS A GOOD CHANCE THAT THIS IS THE LOW FOR THE MOVE LOWER AT THIS STAGE. First resistance at 9410 but above here targets strong resistance at 9510/15. A break above 9530 however keeps bulls in control & targets resistance at 9640. Just be aware that further gains could then target an excellent selling opportunity at 9740.

A close below 9300 starts a new leg lower in the 9 month bear trend & targets 9230/20. If we continue lower look for 9130/20. JUST BE AWARE THAT WE THEN MEET VERY STRONG SUPPORT AT 9060/9050. More on this if we approach it during the week.

Ftse March contract

FTSE broke important support at 5690/80 to hit 5641. We may just see a recovery now as other indices hold August lows. First target is 5980/85 but above here look for resistance at 5711/15. This could hold a rally but further gains target a selling opportunity at 5750/55. Shorts need stops above 5775. A break higher targets 5795 then strong resistance at 5825/30.

Failure to hold above 5640 targets strong support at 5615/10. There is a very good chance of a bounce from here but longs need stops below 5590. A break lower could target 5575, 5545, 5530.

E Mini Nasdaq March contract

Emini Nasdaq has collapsed again hitting the target of September lows at 4041. There are signals that we may have now seen a low for the day...perhaps even for the correction at this stage. First target is 4077 then resistance at 4096/99. We should struggle here but if we continue higher look for 4125 then strong resistance at 4135/38. Try shorts with stops above 4145. Just be aware that a break higher from here then targets 4166/69 & perhaps as far as a selling opportunity at 4190/95.

A break below 4035 targets 4000/3999. A break below 3990 risks a slide to 3982 then 3960/56.