#share #trading #stocks HI all The US shutdown finally turn the markets red S&P A sea of red across the markets this morning. It looks like the shut down in the US and the realisation that the leader of the most powerful nation in the free world can’t seem to get his act together. Although Bush was a little bit extreme for anyone’s taste, Obama seems to have taken the diplomatic side a bit too far. After the hesitations with Syria, and I’m not saying that was not a good call to hold on military action, but any show of weakness is dangerous. The slow reaction on foreign policy has filtered through to matters of domestic policy and now it looks like anyone who can is testing the resolution of Obama. The S&P is currently moving lover and resting on support of 1665.50. From here we have 4 main areas of support before we hit key support at 1649.50. The pivot will be 1659.50 today and if we close below this then the rest of the week will see more and more sellers come into the market. We of course, have to be aware of the opportunistic dip buyers. The US shut down will end at some point and that will see markets go bid, the question s for how long? DAX The DAX has followed all the markets lower this morning and is certainly outperforming the rest of Europe. The key pivot here today is 8476, this ties in with a key Fib 61.8% of the daily up move and also a key support trend line. If this is broken the 8369 and all the way down to 8245 is where you will find some semblance of support in the DAX. FTSE After finally closing below 6393.5 we see the FTSE looking to test key support and the 50% Fib level I have been waiting for at 6236, apart from the 38.2% Fib there is not really any key support for the FTSE. With it continually out performing European markets this could be an opportunity for heavy selling in the FTSE for the next few day to really push out those long term buyers. STOXX Very much with the same view as the FTSE and DAX. Long term buyers will be wary of these key support levels and if broken we could see some long term liquidation of positions. There however is a lot of support all the way down the STOXX so 2858 is the 1st testing point, all the way down to an absolute key level at 2822. If the selling continues to be aggressive do not be surprised for the STOXX to be trading as low as 2753 by next week.
Posted on: Mon, 07 Oct 2013 08:53:41 +0000
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