E-mini S&P completed the right should of a small head and shoulders pattern breaking the neck line is at 4590/4580 for a medium term sell signal.
A potential drop of 200 points is on the cards.
NASDAQ futures could be starting a short term bear trend - that situation is certainly developing with lower highs on bounces and lower lows on each down move.
E-mini Dow Jones only edging lower compared to the other 2 markets. However we are holding below the 100 day moving average at 35335 which adds a negative bias.
It is clear certainly more clear now that bears are gaining in confidence and increasing their attacks. However there will always be buyers seeking bargains at lower prices and they will jump in aggressively.
Today's Analysis
E-mini S&P break of the neck line at 4590/80 is a significant sell signal. Targets initially are 4525/20, 4495/90, 4450/45.
Strong resistance at 4590/4600. Shorts need stops above 4615.
NASDAQ is building a minor negative trend in January targeting 15550/500, 15350/320 and retest of last week's low at 15170/150. Further losses however are being seen towards the 200 day moving average at 15000/14950. A break below here is a significant sell signal and we could see losses accelerate to the downside. A break below 14830 is the next sell signal.
Bulls need a move above 15350 today but we still run in to resistance at 15480/510 and strong resistance at 15650/700.
E-mini Dow Jones breaks the 100 day moving average at 35350/330 to test less important Fibonacci support at 35120/110. A break below 35090 therefore should be a sell signal targeting the 200 day moving average at 34900/850. Failure here (likely eventually) risks a slide to 34560/540.
Strong resistance at 35450/550. Second resistance at 35760/790.
Video analysis -