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S&P 500: Longs Need Stops Below 4485

Published 12/21/2021, 06:57 AM
  • E-mini S&P MARCH - Selling a break below 4650/40 worked perfectly targeting 4620/10, 4590/80, and 4550/40 yesterday for profit-taking. A low for the day at exactly the 100 days' moving average at 4520/15 as predicted.

  • I did warn you that bulls have not given up and will trigger strong gains, even if this is a developing bear trend.

  • NASDAQ MARCH shorts at strong resistance at 16400/450 worked perfectly with a high for the day here and an 850 tick collapse as far as my target of 15560/530. This was the best chance of a low for the day and I nailed it with a bounce from 15492.

  • E-mini Dow Jones MARCH could be building a very large head & shoulders reversal pattern over the past 5 month, but it could take a few weeks to complete the right shoulder.

Today's Analysis

E-mini S&P 500 bounce from the 100-day moving average at 4520/15 is headed for the target and resistance at 4605/10. We should struggle here with a potential high for the morning. However, if we continue higher look for a selling opportunity at 4650/60 with stops above 4670 A break higher is a buy signal.

Shorts at resistance at 4605/10 target 4580/70. Below 4560 risks a retest of the 100 day moving average support at 4520/15. A good chance of a low for the day here again. HOWEVER, probably the best support for this week is at 4505/4495. Bulls have not given up and will trigger strong gains, even if this is a developing bear trend. Longs need stops below 4485. A break below here is an important medium-term sell signal.

NASDAQ shorts at strong resistance at 16400/450 work perfectly hitting the 15560/530 target. Longs here also worked perfectly with a 200 tick bounce from here. Further gains are possible to 15850/950 for profit taking on longs. We could continue higher as far as strong resistance at 16050/150. Shorts need stops above 16250.

Again, support at 15560/530 is the best chance of a low for the day, but a break below here is a sell signal with another 200 tick drop likely.

E-mini Dow Jones hit the 34700 targets but ran as far as 34547. The bounce has beaten 34900 and holding above here allows a recovery to first resistance at 35200/300. A high for the day possibly, but further gains meet very strong resistance at 35500/600. Shorts need stops above 35650.

Minor support at yesterday's low of 34550. A break lower targets 34350/300 with the most important support of the week at 34100/34000. A break below here is a very important longer-term sell signal.

Video analysis

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