short term - battle grounds galore

2 hour charts for DAX, FTSE and NDX 100

Battle in all markets between sellers and buyers
(S&P 2830, 2785 - key levels)

waiting for breaks of up or down for next direction
Or trade the range - but getting smaller so should resolve soon

DAX still consolidating

The DAX despite the BEARISH sentiment for the last 6 weeks, has only fallen at most 4% from the recent high, and actually has NOT broken support, effectively rangebound between 7140 and 7460.

Looking at the RSI and MACD the break out over DAILY resistance resulted in the market being overbought.  Recent action has relieved those conditions and with quite high bearish retail sentiment, we could see a run to new highs if the market moves higher and breaks out over 7460.

Fly in the bullish ointment : US elections next week
Obviously a break below 7140 increases chances that recent action is a TOPPING pattern

DAX daily

DULL...something's going to give soon?

Looking at the FTSE 3 hr chart it has moved in basically 100 point range for the whole of February.

Something's going to give..

either a break up out of the range

or a correction of the move up from December 2011

DAX BIG head and shoulders still possible

Here's the chart from March 2010

and here is the one as of today...we are still in that large formation

A break through that red dashed line and all hell breaks loose , until then looks like we are still in that range 5600-6300 approx

(NOT!) Trading ranges and the waiting game..

With a holiday in the US today (Presidents Day) it seems that trading will be subdued, so taking a look at the very short term can see some ranges in many indices and currencies.  Concentrating on DAX and Cable (GBPUSD).  Unless you are nimble ranges are frustrating, waiting for that move one way or another. PATIENCE is KEY (repeat again and again!)

Look at the DAX 10 min chart:

 If we break to upside looks like potential target initially (and probably quite quickly is 5684)
, while a break to the down side targets 5324, which fits in with previous posts targets for DAX (prior post link).


Now looking at cable we can also see a range in the 4 hr chart., and this  SHOULD eventually break to the downside roughly calculated minimum target 153.42, maybe more.  IF it breaks HIGHER then it is likely the DOWN move has finished...

 

You can see some spikes up and down through the range, this is when traders are "anticipating" the break out, only to cover when it fails, and heads back into the range. Which is why RANGE trading is difficult and frustrating.