Index Trading - Eurostoxx 50, DAX, S&P 500

In my opinion nothing really changed during the last few days. The EUROSTOXX 50 was forming a doji candlestick in yesterday's session. Moreover it is just around resistance around 2850. In the hourly chart the EUROSTOXX 50 is showing a bearish wedge which should break in one direction either today or on Monday. After this run I would bet that the break would happen to the downside but who knows. The bearish divergence on the RSI is still intact so if you are long protect your profits and watch out.

The XETRA DAX has formed a pattern of indecision on Tuesday followed by a bearish engulfing pattern yesterday on heavier volume. As I mentioned in former posts I am expecting a move to either 6800 or even 6650. Nevertheless you must have a proper money management and a stop above the recent highs if you want to trade that.

The S&P 500 is looking much better. If it either takes out Tuesday's highs or closes today (weekly) at least at yesterday's level I would get bullish on the US-Indices. Nevertheless also the US-Indices are looking quite extended to the upside and with such a bullish sentiment and the low Volatility-Index a move back to 1200 in the S&P 500 seems quite reasonable. If the S&P 500 closes at 1226 or below today the action would look like false breakout and the weekly candlestick would form a shooting star.