Wednesday October 15: OSB Daily Technical Analysis- Indices
OSB Daily Technical Analysis for October 15, 2014
S&P 500 rallied intraday attempting to get back above the 1900 level but resistance proved too much. The market managed to remain positive for the day but action suggest further downside is possible during this correction with the 1850 now becoming a realistic target. Technically this market is bearish.
Dow 30 The Dow broke out in the early session but found resistance at the 16385 level and turned back from there. Some consolidation from the recent sell-off is likely with lower prices possibly at the 16100 level to be seen in the next several sessions. A close back above 16400 is likely to extend back above the 200 DMA at 16500.
DAX 30 The DAX bounced back and managed to close just below the key 8800 level. Rally and bounce back from the recent sell-off is likely to be short lived as the DAX is significantly bearish. Note that the 50 DMA crossed below the 200 DMA on Tuesday confirming the bear case. A close back above 9000 would change this view.
FTSE100 followed suite with the other indices and ended the day on a positive note on Tuesday. FTSE is well supported in the 6300 area with strong resistance in the 6380-6400 area above. Market is oversold and likely to bounce a bit more from here and consolidate. Bearish
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