S&P 500: Shorts need stops above 4615 [Video]
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Emini S&P MARCH completed the right should of a small head & shoulders pattern breaking the neck line is at 4590/4580 for a medium term sell signal.
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A potential drop of 200 points is on the cards.
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Nasdaq MARCH I warned that we could be starting a short term bear trend - that situation is certainly developing with lower highs on bounces & lower lows on each down move.
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Emini Dow Jones MARCH 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.
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It is clear certainly more clear now that bears are gaining in confidence & increasing their attacks. However there will always be buyers seeking bargains at lower prices & they will jump in aggressively.
Daily analysis
Emini 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 & 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 & 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 & strong resistance at 15650/700.
Emini 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.
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