in commentary, technical analysis

Equity Indices Technical Analysis Outlook – Jaunary 2014

Here at FuturesTechs we cover the Futures for the following Indices on a daily basis.

Below are a few lines on each Index.

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DAX Futures – Ended 2013 making new highs for the year, and new all time highs. The first day of 2014 saw a big sell off that right now looks like a buying opportunity as we held the short term Fibonacci support at 9391.5.

Above the recent all time high at 9642.5 we have targets at 9788 then 9867.5 then the obvious one I guess; 10000. Caveat – At the top of the channels I have on my Weekly charts.

Eurostoxx 50 – The recent high at 3127 is the highest print since September 2008, a time when this Index was suffering under the weight of it’s plethora of Bank Stocks!  3184 and 3520 are the next Fibonacci targets if this trend continues, which is the suggestion on the chart. The recent low at 3045 was a short term Fibonacci “tag”.

The FTSE 100 underperformed last year, although did have a good end to the year and is now eyeing up a number of really big resistance levels between 6726 and 6852.5.

Trade might start off a tad quite on the other side of the pond with the “big freeze” causing bother.

The S&P 500 made a new all time high with a 1846.50 print as 2013 came to a close. we have pulled back from here, but nothing to damage the uptrend, and further gains seem inevitable. 1877-1886 is the next area of resistance to target, and as with the DAX we have a big round number beckoning if further gains ensue, with 2000 surely in traders’ thoughts now.

The Dow is travelling in an uptrend channel and is getting close to the top line of said channel, which currently sits at 16675, protected by the recent high at 16540.

The NASDAQ has been a lot higher than its current levels of course, back in the throes of the dot com bubble in 1999/2000. This was last year’s outperformer and could benefit from some retracement, but retracements for now are short lived affairs and the “buy dip” brigade are active! 3594.75 is the recent high. The next major resistance levels don’t show up on the chart until we have a 4 handle, and once again this is one where the best advice is the old adage “The Trend is your Friend”.

Summary: For now it is best to go with the tide, which is clearly favouring the bulls. I do expect to see a pullback in Equity markets some time in 2014 however, and it will likely be deeper than most expect. The market is getting very complacent, and the dip buyers are starting to think it’s a “no brainer”. That particular phrase is one of my least favourite catch phrases, apart from as a reliable reverse indicator!

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We also cover Fixed Income Futures, Commodity Futures, and Forex, so “watch this space” as we will write similar “round up” Blog posts later in the week on these.