E-mini S&P MARCH collapsed with strong inflation numbers. A bearish engulfing candle followed by another down day yesterday signaled a double top in place for a medium term sell signal.
NASDAQ MARCH broke strong support at 16120/09 for a sell signal hitting the next target and strong support at 15900/850. However, we over ran to 15750 before the bounce.
E-mini Dow Jones MARCH tested support at 35600/500 Wednesday morning.
Analysis
E-mini S&P tested strong support at 4620/10 but over ran to 4595. There was longer term Fibonacci support at 44595/90. A break lower was a sell signal targeting 4560/50, perhaps as far as the December low at 4505/4495. A break below here could trigger another 150 point collapse. Gains were likely to be limited with strong resistance at 4635/45 and 4655/65. Shorts needed stops above 4670.
NASDAQ tested strong support at 15900/850. A break below 15750 was a sell signal targeting 15600/500. This support worked perfectly at the start of December. A break lower this time, however, was more likely, for an obvious sell signal initially targeting 15350/250. Gains were likely to be limited with strong resistance at 16100/16200. Strong resistance again at 16400/450.
E-mini Dow Jones first support at 35600/500. Longs needed stops below 35400. A break lower targeted 35100/35000, probably as far as 34800/700. First resistance at 35550/650. Shorts needed stops above 35800. A break higher could retest the 36000 high for this week.