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S&P 500 Futures Reverse Just Below All-Time Highs: Key Levels to Watch

Published 02/21/2024, 03:21 AM
Updated 07/09/2023, 06:31 AM

Emini S&P March futures reversed from 5059, just 7 points from the all-time high at 5066, set on Monday last week.

Obviously, a break above here is a buy signal and initially targets 5090/94.

However, we do have a potential double-top pattern after the rejection on Friday. It's only small and would require a break below last week's low at 4936 for confirmation of a short-term sell signal but if you are looking for an excuse to short the index this is the best one for a while. Shorts need stops above 5070, so the downside risk is small and if we do break below 4935 we can target 4850/40 so there is a profit-taking 3:1 risk vs reward.

In the short term, for scalpers, we have some support at 4985/75 (with a low for the day at 4968 yesterday) but a break below 4965 today risks a slide to 4930/25, perhaps as far as 4900/4895.Emini S&P - 4-Hour Chart

Nasdaq March futures reached 18026, just shy of the all-time high at 18100/120.

A break above 18130 can target 18300/330.

However, Friday's bearish engulfing candle on the daily chart, just below the all-time high is a warning for bulls. Friday's peak was not close enough to Monday's all-time high to call it a double top but the price action suggests a period of consolidation, if not a short-term (minor) correction to the downside.

We broke good support at 17700/650 but must hold below below 17500 if we are to see further losses targeting 17460/420, (which held the downside yesterday) perhaps as far as a buying opportunity at 17230/180. Longs here need stops below 17100.

Emini Dow Jones March futures beat resistance at 38600/650 to hit my next target of  38880/900 with a high for the day exactly here.

We can only scalp at this stage in the 2 week sideways consolidation as there are no swing opportunities until we see a breakout of the range. With minor support at 38600/550 (which did hold the downside yesterday) and 38350/300, longs need 50-point stops on these scalping levels and look for a 200 to 300-tick profit.

Any recovery meets the all-time high at 38980-39012. Above here we look for 39160/220. A break above 39270 targets 39450/500.

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