Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

NASDAQ Continues To Trend Lower - Gains Likely To Be Limited

Published 02/15/2022, 06:24 AM
  • E-mini S&P March could be forming the right shoulder of a huge head & shoulders pattern now, with shorts at strong resistance again at 4580/90— the perfect trade last week. Shorts at resistance at 4500/10 worked perfectly on Friday as we hit 4445/35 and broke below here (not surprisingly). The weekly close below here is more negative for next week if we continue to hold below.

  • NASDAQ March outlook negative with a high for the day exactly at resistance at 14380/410 yesterday.

  • E-mini Dow Jones March is volatile, with no clear trend or pattern. We could be building a head & shoulders reversal pattern but we are a long way off completion.

Today's Analysis

E-mini S&P holding below 4445/35 (a high for the day 7 points below here yesterday) is an obvious sell signal targeting 4405/00 and support at 4360/50. (A LOW FOR THE DAY EXACTLY HERE YESTERDAY). A break lower targets 4325/20, then 4270/65. Further losses test incredibly important support at 4195/4185.

I still think gains are likely to be limited with resistance again at 4435/45, but a move above 4450 can target 4475/80, perhaps as far as resistance at 4500/10. Shorts need stops above 4520. Obviously, we still have strong resistance again at 4580/90 (but I doubt we see this level again for a very long time). Shorts need stops above 4610. A break higher is a buy signal targeting 4640/50.

NASDAQ continues to trend lower so I will expect that gains are likely to be limited with minor resistance at 14380/410 (a high for the day exactly here yesterday) and again at 14500/530. A sell opportunity at 14720/750. Shorts need stops above 14850. A break below 14180/160 targets 13900/850 before a retest of the January low at 13720/700. On a break below 13650, we could go quite quickly to 13400/350 and strong support at 13000/12900.

E-mini Dow Jones saw a high for the day exactly at 34750/700 level. We headed lower to 34500/450 with a low for the day at the next target of 34300/250. Watch these levels again today. A break lower however targets support at 34000/33950. A break lower however targets 33650/600. Minor resistance at 34950/35000 with strong resistance at 35350/400. Shorts need stops above 35500.

Video Analysis

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.