FTSE dipped to 5365 support and held above 5359 as hoped as the market turned and shot higher through 5427 to 5447. Despite the fairly firm close, the market could be set to turn lower today.
Your first support area today is seen at 5397/93 and below here we should see 5381 on the way to 5372 for short covering. Buyers could wait for 5359/53 before attempting longs today for a quick turn with tight stops below 5350 as this signals further losses to a target of 5330/28. This level could mark the low for today, as long as we hold above 5320. If we fail here, look for 5297/91 as the next stop.

Above 5451 we meet 5459/62 resistance which are the highs from Monday's open and are unlikely to give way today so this should act as a good selling opportunity up to 5468 today. Only a break above 5477 rescues bulls for a run to 5494/98.

Dax paid a visit to 6064 and as predicted this marked the low as we shot higher to 6179 which marked the high, again just as predicted. The market closed quite firm but weakness is likely today none the less.

A double top now signals losses for today's session and a move below 6136 is your first sign of weakness. This should lead to a test of good support at 6109/04 for short covering and maybe a small bounce from here. Eventually a break below 6100 may be seen for a slide to 6085 on the way to better support at 6067/63 which held yesterday. Buyers will attempt longs here again but will need to activate stops below 6054 as this signals further losses for this market down to 6028/23. This could well mark the low for today but stops on longs would be needed below 6015.

However if we do sustain a break above 6179/82 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.

Euro Stoxx only dipped as far as 2703 before turning higher to test 2746 and then broke higher to 2761, just short of our selling opportunity at 2769. However it does look like we could turn lower again today.

A test of support at 2738/36 will help to give us direction as below here could weaken prices down to 2728/25 initially but there is scope for 2715/13 to be tested. If this level fails we should challenge yesterday's low at 2703/2700. There is a chance of this holding today but a break below 2795 activates stops on longs as the market slides towards 2678/77 next.

Only above 2761 signals a run up towards recent highs at 2769/73. This should be too tough to beat and may be an excellent opportunity to establish 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.