Technical Picture of the Stock Markets - DAX, EUROSTOXX, DJIA and S&P 500

The German DAX finally managed to get above the 6900 level on a closing basis. Nevertheless the volume looks to be pretty low for a breakout-day. Moreover a very key resitance level is around 6960 to 6975 namely the trendline from October 2009 which limited every rally till now. Maybe we could jump above it just to test the psychological number of 7000 points but I personally think this trendline holds this time too. Another reason to be slightly cautious is that the DAX today lagged yesterday and today against the EUROSTOXX 50 whereas in the weeks before the DAX constantly outperformed the EUROSTOXX 50.

Also the EUROSTOXX reached a fibonacci retracement level which was also resistance in May and June. On Tuesday the index was much oversold so this bounce is not very surprising.

The breakout of VOESTALPINE AG worked pretty well so far and also if you got the S&P or DJIA breakout it could be time for profit taking.

Both the S&P 500 and the DJIA are reaching resistance around the November highs. A break there would indicate more upside. You should also consider in your trader tomorrow's jobs report, a positive number could certainly lift the market another leg higher.

In conclusion the four mentioned indices are all running into more or less strong resistance level which could be a shorting opportunity but a break especially in the US-Indices would indicate more upside even in the European Indices.