Euro Stoxx plunged to the 2708 target which held.
Support remains at 2710/08 today but any further losses below here could test 2695 which may be an buying opportunity today. A break below 2690 however sees prices sliding towards excellent support today at 2674/70. However stops on longs need to be activated below 2764 as this signals continued selling down to 2646/40 today.
A test of the upside is possible if we can hold above yesterday's low at 2610/08. This could take prices up to 2743/46 and this will be the crucial test for today. Sellers will try hard to cap the market here but a break above 2752 could signal a run up towards recent highs at 2769/73. This should be too tough to beat and may be an excellent opportunity for establishing shorts for a move lower in to the end of the week. Bulls need to see a break above the 2776/78 area for a move to 2795 on the way to trend line resistance at 2819/21 today. Sellers will see this as their opportunity to force a ceiling in prices today so watch for profit taking and the risk of the market tumbling lower.
Dax will need to hold on to 6082/79 today to give bulls hope of getting back above 6126/29. If we can then break through 6140 here there is scope for a test of 6155 on the way to last week's highs at 6175/79. This should remain hard to beat, so sellers will attempt shorts here once again in the hopes of capping the market before a correction lower. However if we do break higher then we should be on the way to 6207/10 before 6218/26. Then only a break of 6235 allows for further gains to 6247/49.
Below 6107/02 keeps pressure to the downside with a test of yesterday's low of 6082/79. If this does not hold today then a visit to 6064/54 is likely although this could be enough movement to the downside today so look for a bounce from here.
Only below 6040 sees further weakness to 6027/16 with 5997/91 the next stop below.
FTSE tumbled to our target of 5384/80 and closed only slightly above so this level will be important today.
If we can hold above here then we could look to test resistance at 5417 which could be too tough to beat and may see heavy selling here again. Only a sustained break above 5427 allows further gains to 5441. Above here we meet 5459/62 resistance which is unlikely to give way today so this should act as a good selling opportunity.
5372 down to 5365 could act as a decent support band today but bulls will have to throw in the towel below 5359 as we see 5351 on the way to 5330/28. Watch for short covering here to hold the market and perhaps mark a low here today as brave buyers attempt longs. However a break below 5320 should trigger stops on longs as we tumble towards 5307 and then 5297/91 as the next target.
