OSB Daily Technical Analysis for December 16, 2014

S&P rallied in the early session on Monday however failed to hold onto its gains breaking below the 2000 level making a new monthly low. The S&P now sitting below its 50 DMA tipping the scales to the bears in the short/medium term. Support beneath at 1970.

The Dow followed suite with the S&P and broke lower on the day finding support at 17115. A break below support below at 17100 extends to a test of the 17000 level and ultimately leads to medium term bearish stance for the Dow which is at a critical juncture at the moment.

 

The FTSE had a very volatile session on Monday breaking into a new monthly low and dipping beneath the 6200 area. This area is well supported and the FTSE currently looking oversold likely to see a bounce somewhere in this region. Overall sentiment for the FTSE is bearish for now.

 

The DAX broke below the 200 DMA with losses of 2.88% on the day suggesting further downside with a likely test of the 9200 level. Overall sentiment in the DAX is bearish for now with any bounces likely to be shortlived. A break above the 200 DMA challenges this outlook.

The Nikkei gapped lower on the open on Monday breaking through the 17100 level. Support beneath at the 17000 area. A break below extends to support in the 16800 area. Nikkei correction likely to fill in November gap as it heads lower.

 

 

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