Dax reached the 6103 target and failure to break above 6115 has kept sellers short at this level.

Any pullback could test support at 6058/54 which is a good area for short covering as buyers attempt longs. If we keep sliding look for 6039 before 6028/20 which may be enough on the downside today. However if this level fails look for a test of good support at 5997/90 which should see strong buying interest today and therefore a chance of a bounce from here. A break below 5982 will signal bears still in control so stops on longs will be activated below here as we look for excellent support at 5965/60 next.

As stated yesterday: Only a break above 6115 keeps bulls in the game for a run to 6139/42 and then 6155/58. It is possible we will see prices as high as 6171/75 before heavy selling pressure resumes.

Euro Stoxx reached the 2725 target but has unexpectedly broken higher so we have to see if we can break yesterday's high at 2731. As stated yesterday: Only a sustained break above 2730 keeps bulls in the game for 2748/52 with a break above 2756 to target 2764/67 and perhaps 2776/78 today.

Holding below 2730 keeps the sellers short and back below 2718 we could see the market return to 2700 initially. From here down to 2793 we could see some short covering but below 2787 sees a further slide to 2782. However there is scope to reach 2669/67 where buyers are likely to jump back in so there is a chance of a floor here today. Only below 2660 keeps pressure to the downside but only as far as 2653/50. This should be a good buying opportunity today should we fall this far.

FTSE hit the 5378 target but we broke above 5385 to activate stops on shorts here as we reached 5094.

The strong close could lead to a test of August highs at 5414 where we should see profit taking today and there is the risk that the market tops out from here for the week as stated yesterday. If we do manage to make it through this barrier then look for 5432 as the next stop. This is the high of mid May and therefore should be tough to beat today. Again, if we do break higher the next target is 5451/53 with a break above 5462 to target further gains to 5494/98.

With the market critically over bought in the short term we could see a pullback to 5368 initially. Below here sees 5352/47 where there should be good buying interest. Below here sees good support at 5334 but watch for a break below 5328 to signal a test of excellent support and a good buying opportunity today at 5320/15.