FTSE - Sept Contract

A break above 5237 could take us up to our over all target for the recovery of 5264/71 as stated on Friday. This should be the chance sellers are looking for to reinstate shorts and pressure the market lower for the rest of the week. Only a break above 5283 keeps bulls in control today for 5320 and perhaps 5359/64 for an excellent selling opportunity. Back below 5190/87 keeps the market under pressure for 5170/68 and then support at 5149/42. Below here sees 5128/23 before a test of 5106/00. If this area fails to hold today then we look for a test of last week’s lows at 5062.

Dax - Sept Contract

An open above 5915 will help bulls on their way to 5936 once again. If we make it through resistance at 5946/52 then look for a test of Monday's high at 5982/87. If we can break above here then there is scope to extend the recovery to 6023/28. We would then need to see a break above 6034 in order to make any further progress on the upside with 6054 likely to be seen but there is a chance we can run all the way up to 6072 before 6093/6103 for an excellent selling opportunity.

A slide back below 5900 could lead to 5885/80 before 5850. A break below here keeps the market under pressure with a test of 5836 likely before yesterday's lows at 5816. Below here we could see a test of July lows at 5805 which could hold the downside for now and offer a buying opportunity today. If this fails however we could pay a visit to good support at 5780/75 on the way to 5764/56.

Eurostoxx - Sept Contract

A move above 2637 is required by the bulls today for a test of strong resistance at 2650/52. If we make it through here though we should see 2661/64 and this could be too tough to beat today so watch for profit taking as sellers try to cap the market. If we can keep going higher though look for 2674 next and perhaps a chance at reaching 2684/87. This should offer an excellent opportunity for sellers to jump back in to the market who will be keen to add to shorts up to 2695/97. There is a good chance that this will be the end of the bounce back but watch for a break above 2706 to allow further gains up to 2718/25.

If we fall back below 2598 then bulls will remain under pressure for 2575/69. A break below here then signals a test of last week's lows at 2552 before a test of good support at 2530 which could hold the downside today.