Daily Forecast - 04 March 2016
E Mini Nasdaq March Contract
Emini Nasdaq above 4325 targets 4340 & above here re-targets this week's high at 4357. A break higher is possible despite severely overbought conditions & could target resistance at 4376/80. A good chance of a high for the day & also for the 3 week recovery. This is where the selling could resume so be very careful. Shorts need stops above 4395 but really we need a weekly close above here to confirm bulls remains in control for now. A break above 4400 targets an excellent selling opportunity at 4428/30.
Below 4325 risks a retest of the big support at 4310/4300. It is only back below 4290 that this week's breakout looks like it has failed & bears should start to pressure the market towards 4283/80, perhaps as far as 4265/60 but we could collapse as far as strong support at 4245/40.
Emini Dow Jones March Contract
Emini Dow Jones testing very strong resistance in the 16940/980 band. We should start to run in to trouble here & this is where we could see the 3 week recovery ending. If we can sustain a move through 17000 however we target short term trend line resistance at 71040/050, perhaps as far as the 200 day moving average at 17130/140 but unlikely any further in severely overbought conditions. Only a WEEKLY CLOSE above the 100 week moving average at 17200 could be seen as more positive for next week.
First support at 16820/810 but failure to hold above here could target 16740/730. If we continue lower look for good trend line support at 16660/650. However a break below 16600 is an important sell signal & targets 16550/540 then 16480/460.
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