Dax 40 March is forming a sideways consolidation as volatility decreases, which is normal in both a bull and bear trend. We do not know how long this process will take, but there is no sell signal.
We held a range of about 250 ticks last week, so there are few decent trading opportunities until we see some movement again.
FTSE 100 March held a 100 tick range last week, so the same levels apply today as we wait for a move.
Remember, when support is broken, it usually acts as resistance and vice-versa.
Today's Analysis
Dax March held a 115-tick range on Friday. Support at 15000/14950 (a low for the day, just 33 tocks above yesterday) with a bounce from here to target minor resistance at 15170/200. If we continue higher, look for strong resistance at the January high of 15300/330. Shorts need stops above 15380. A break higher is a buy signal.
First, support again at 15000/14950. A break lower targets 14870/850, then strong support at 14770/720.
FTSE March longs at first support at 7695/75 worked perfectly yesterday as we established a sideways trend for an easy 50-tick profit on the bounce to strong resistance at 7745/65. (A high for the day here yesterday, in fact) - Shorts need stops above 7785. A break higher is a buy signal targeting 7825 before a retest of 7850/60.
First, support again at 7695/75. Longs need stops below 7865. Emini S&P March reversed from my next target and 1-month rising trend line resistance at 4095/4100 to hit first support at 4045/35. A low for the day here, but longs need stops below 4025.
Nasdaq 100 Futures March wiped out all of Friday's strong gains as we establish a new sideways range. Emini Dow Jones March is clearly in a sideways pattern for two months.
Today's Analysis
S&P 500 Futures March held 1-month rising trend line resistance at 4095/4100 today after that 100-point jump I expected by the end of the week.
The bearish engulfing candle on the 1-hour chart triggered a move to the first support at 4045/35, exactly as predicted. Longs need stops below 4025. A break lower meets a buying opportunity at 4000/3990. Longs need stops below 3980.
Longs at 4045/35 can target 4075, perhaps as far as resistance at 4100/4110. A break higher can retest the December high at 4140/45.
Nasdaq March bearish engulfing candle on the 1-hour chart triggered a move to the downside exactly as predicted to the first support at 12000/11950, with a low for the day right here. Longs need stops below 11850. A break lower today can target 11730/700.
A bounce from first support at 12000/11950 targets 12300, then 12460/480.
Dow Jones Futures hit my next target of 34180/200 on Friday, then reversed on Monday, breaking support at 33980/930 to hit my next target of 33800/750, with a low for the day exactly here. A break below 33700, however, risks a slide to 33500/450.
We should have strong resistance at 34150/200. Shorts need stops above 34300.
