S&P500 shorts worked out great
|Daily Forecast - 19 May 2017
S&P June Contract
Emini S&P strong bounce from 2345 reached our selling opportunity at 2373/75 & this trade worked perfectly as we topped exactly here. We have dipped to far to 2362 but below here meets quite good support at 2355/53. A break below 2348 is more negative & we may then break yesterday's low at 2345/44 for 2341/40 & perhaps as far as 100 day moving average support at 2335/34. Just be aware that any further losses in to next week target the April low at 2323 then better support at 2318/16.
A weekly close below 2348 would be a short term sell signal for the start of next week.
Resistance at 2374/75 could hold again but shorts need stops above 2380. We then meet minor resistance at 2385/86. Above here clears a path to 2394/96 before the all time high at 2403/2404.50.
Emini Dow Jones June Contract
Emini Dow Jones shorts from selling opportunity at 20725/735 work perfectly as we trade below 20660/670. Look for first support in the 20590/560 area. Below here keeps the pressure on for the next target of 20480/460 which now includes the rising 100 day moving average so will be important again. A break below 20400 however targets the April low at 20320/310. We have strong support from here down to the 23.6% Fibonacci 20280/270.
Bulls appear to be losing short term control & must push prices through the low last week 20760 for any chance of staying in the game. Above minor resistance at 20790/800 allows a recovery to towards 20850/860. Gains are likely to be limited but above here means we could recover all of Wednesday's losses at 20925/935.
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