Taken from www.charmercharts.com
FTSE:
FTSE was unable to break 5400, the 50% retracement of the losses from 6095.
We have gapped lower this morning and are starting to unwind a short term over bought position which should lead to weakness in the coming days. Good support at 5290/80 is now being tested and we could see a small bounce from here back to 5335/40 for a chance to sell short again. A break below 5270 keeps us heading lower to 5259 next before trend line support at 5240 but below here we have good support at 5224/17 which is unlikely to be broken today.
Above 5335/40 allows a test of 5370/80 and then 5405 to be challenged once again but this is unlikely to give way so use this as a selling opportunity if we are lucky enough to get the chance.
DAX:
Dax made it higher through 5606 but only as far as 5639 resistance. We have a trend line intersecting at 5636 today and with the market now severely over bought in the short term it is looking like the upside is very limited.
The first test of the day comes in at 5582/72 and an open below here puts downside pressure on the market for 5524 our initial support today but below here look for 5484/77 before 5450/45. A break back below 5430 then keeps the pressure to the downside today for 5380/73 which looks likely to hold any profit taking today.
Unlikely we can break 5636/39 on the upside now but if we do manage it we look for 5661/63 and perhaps then 5734 to hold and offer a selling opportunity today.
Eurostoxx:
Eurostoxx failing to break resistance at 2188 as we start to look overbought in the short term.
A trend line comes in today at 2150 so if we dip back below here it could trigger some profit taking with 2140/37 the first area to look for. Below here look for 2124/23 before better support at 2091/89. If this fails we look for 2061 and then 2035/31 below.
A move above 2188 is now looking much less likely but if we do make it through here it allows us to fill a gap to 2196 from 2nd Sept. If this does not hold us back we could go on to test 2232/38 and perhaps even 2264/68. However we are starting to look over done on the upside so any further gains from here may look limited.