US stock market outlook remains negative [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. A bounce to this level was a perfect sell opportunity last week & as predicted we dropped 200 points is from here. Not a bad week!
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Nasdaq March lower as expected to the only support for the day at 14430/14380, with a low for the day exactly here.
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Emini Dow Jones March broke the 200 day moving average at 34900/850 as expected to hit the next target of 34560/540 & was expected to hit first support at 34050/33950 on Friday.
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A low for the day just 50 ticks above here.
Daily analysis
Emini S&P break of the neck line at 4590/80 was a significant sell signal with the break of the 200 day moving average at 4430/20 another important medium term sell signal. First target would be 4360/50. However 4200 is definitely not out of the question.
Gains are likely to be limited with very strong resistance at 4425/35. Shorts need stops above 4450. A break higher however can target 4480/85.
Nasdaq lower again as expected targeting the only support for the day at 14430/14380. A low for the day exactly here so obviously this is key to direction now. A break below here is an important sell signal of course & we could easily drop another 500 points.
A bounce from the only support for the day at 14430/14380 is likely as trading starts this week. We could reach 14600/650, perhaps as far as strong resistance at 14800/900.
Emini Dow Jones currently holding first support at 34050/33950. First resistance at 34450/500. Strong resistance at 34750/800 should we make it that far.
A break below 33900 eventually this week is a sell signal eventually targeting 33200.
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