OSB Daily Technical Analysis for October 14, 2014

S&P 500 continued to sell off on Monday falling to 1865 area. Support below at 1850 is likely to be tested. A close below this level extends down to the 1800 area. Damage on the daily chart suggests that the S&P is likely to continue downward at least in the short term.

Dow 30 bears stepped in to control the day on Monday as the index sold off to lower values after trying to get back above the key 16500 level. Bearish momentum currently overpowering the bulls and likely to remain so for some time.

DAX 30 gapped down on the open on Monday only to entice bulls to step in and push the index almost 200 points higher from the open which proved too much and then sold off again. Overall the DAX is exhibiting strong volatility suggesting some bounce from this level. Bearish bias remains.

FTSE100 gapped on the open which prompted a bounce back above the 6300 level which is now support. A close below this level and test of yesterday’s lows suggests that the index is likely to continue lower. Otherwise a bounce and some consolidation above this area is likely. Resistance at 6400.

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