👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

S&P 500 Futures Hit Buy Levels - Bounce in the Offing Now?

Published 10/01/2024, 03:23 AM
ESZ24
-
1YMZ24
-
NQZ24
-

S&P 500 Futures have been mostly sideways over the past seven sessions, with a tight range between 5756 and 5820, reflecting a lack of momentum.

Emini Nasdaq December hit my target zone and presented a buying opportunity at 42350/250. The session range was between 20056 and 20287.

Emini Dow Jones December longs at 42350/250 worked out perfectly, reaching both targets before the close. The session high and low were 42245 and 42715.

Emini S&P 500 September Futures The Emini S&P held within a narrow 85-point range last week, struggling to push higher in overbought conditions. Short positions remain risky without a confirmed sell signal in this strong long-term bull trend.

Although I don't have strong signals, if we continue to climb, look for resistance around 5875/85, and possibly as high as 5900/05. My recommendation in this low-volatility market is to buy at support and take profits quickly.

However, we overshot the next support level at 5775/5770, dropping to 5756 before rebounding as expected.

If we move lower today, look for solid support at 5745/35, with long positions needing stops below 5730. Potential upside targets include 5755 and 5765.

If we break lower this week, the next target could be 5695/90, with further support at 5680/70. Longs should place stops below 5660 in this scenario.

S&P Futures Chart

Nasdaq September Futures

  • Emini Nasdaq's break above the August high of 20217/251 hit my targets of 20330/340 & 20400/430, but not quite as far as 20600 just yet, with a high for the week at 20538.

  • We just held at support at 20250/150 yesterday but longs need stops below 20050.

  • If we continue lower this week we meet very strong support at 19900/800 and longs need stops below 19700.

Nasdaq Futures Chart

Emini Dow Jones September Futures

  • We wrote: I think Emini Dow Jones gains are likely to be limited in severely overbought conditions but there is definitely no sell signal and I will remain a buyer on any profit taking.

  • We did dip as far as support at 42350/250 as predicted and this did prove to be an excellent buying opportunity but longs need stops below 42150 on a retest today.

  • Targets of 42500 and 42650 were hit immediately, meaning we caught the low and high for the day.

  • A break lower this week however risks a slide to 42000/41900 and longs need stops below 41800.

Dow Jones Futures Chart

Latest comments

Loading next article…
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.