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S&P 500 Breaks Incredibly Important Support At 4195/4185

Published 02/24/2022, 06:35 AM
Updated 07/09/2023, 06:31 AM
  • E-mini S&P March shot higher to resistance at 4327/32 and almost as far as 4350/60 before prices collapsed

  • NASDAQ March shorts at 14100/150 worked perfectly on the collapsed 14100/150 to my targets of 13850/800, 13600/580 and to within 100 ticks of Very important support at 13000/12950 as I write this morning.

  • E-mini Dow Jones March may have just completed a huge head & shoulders reversal pattern for an important longer term sell signal.

Today's Analysis

E-mini S&P breaks incredibly important support at 4195/4185. Holding below here could trigger another 15% correction to the downside. We have already hit 4116. If we continue lower look for 4065/55.

Key resistance at 4195/4205. As long as this hold, the outlook is very negative. However if we close the day above here it signals a false break and we could get quite a short squeeze. A break above 4215 today should confirm a move towards 4260/70, perhaps as far as 4300/10.

NASDAQ tests very important longer term support at 13000/12900. Definitely worth trying a long as this could be a low for the correction at this stage. Longs need stops below 12800. A break lower however could send prices down another 100 points eventually.

Holding support at 13000/12900 targets 13500/600. If we continue higher look for 13800/850.

E-mini Dow Jones broke support at 33200/33000 for an important longer term sell signal. So far we have hit 32226. However we do have very important longer term support at 32400/300 so holding here today triggers a good recovery to strong resistance at 32900/33000.  There are the only two levels that matter today.

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A break below 32000 is then a very important longer term sell signal and could see 750 tick losses almost immediately.

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