Emini S&P September Futures we wrote: reaches resistance at 3 week highs at 3193/96. A break above 3200 targets 3210 & resistance at June recovery high at 3227/31. Shorts need stops above 3235.
We crashed 85 points from 3226 leaving a potential double top sell signal. We broke first support at 3175/73 with stops below 3165 activated & hit the next target & support at 3152/48. Yesterday’s candle is a clear bull trap in overbought conditions, dramatically increasing risks to the downside for this week.
Nasdaq September Futures continued higher to test the big 11,000 number, reaching a new all-time high 11058. Finally, severely overbought conditions kicked in, as we crash 500 points, leaving an important negative candle. Bulls who bought since Thursday now trapped in losing positions and this should weigh on any recovery attempts today.
Today’s Analysis
Emini S&P bulls will be feeling uncomfortable this morning. Holding strong resistance at 3160/70 is negative targeting 3148/45, perhaps as far as minor support at 3135/33. On further losses look for 3128/26 & strong support at last week’s low of 3110/05. Try longs with stops below 3100. A break lower is an important short term sell signal.
Shorts at strong resistance at 3160/70 stop above 3180. A break higher targets 3200/05 with resistance again at June recovery high at 3227/31. Shorts need stops above 3235. A break higher is a buy signal of course.
Nasdaq negative candle signals a neutral/negative outlook to ease severely overbought conditions. It is now risky to hold longs after what could be considered a short term sell signal. Holding first resistance at 10665/695 targets minor support at around 10560 and last week’s mid week low at 10505 before strong support at 10430/410. Brave bulls, who feel the need to buy the dip can try longs with stops below 10350. A break lower targets 10300/290 then support at 10220/200.
Shorts at first resistance at 10665/695 stop above 10760. A break higher targets resistance at 10870/900.
Trends
- Weekly outlook is positive
- Daily outlook is positive
- Short Term outlook is neutral