Euro Stoxx 50 bottomed exactly at important support at 3298/88. Longs worked perfectly as we beat first resistance at 3350/53 to top just 3 ticks from the next target and resistance at 3375/78. Outlook has turned positive of course so we do expect to beat this level today and above 3390 targets strong resistance at 3417/21. This is the main challenge for bulls today and we should at least pause here. I am not too confident in shorts but if you try, stop and reverse in to longs above 3430.
Failure to beat 3375/78 targets 3350/53 then support at 3336/32. The downside is expected to be limited now. Try longs with stops below 3322. Further losses retest the best support for today at 3298/88, BUT YOU MUST BE READY TO REVERSE IN TO SHORTS IF WE SEE A BREAK and CLOSE BELOW HERE. THIS WILL BE THE BIGGEST SELL SIGNAL SINCE WE COLLAPSED BELOW THE 200 DAY MOVING AVERAGE A MONTH AGO BUT IS FAR MORE SERIOUS. WE ARE TALKING POTENTIAL CRASH CONDITIONS. A break below the February low at 3256 is obvious confirmation of the sell signal.