Stocks react to new tariff threats

Emini S&P futures

• Emini S&P March futures broke support at 6920/6910 & the break below 6885 triggered the expected move to the next downside target of 6850/6840.
• We ran as far as 6822 & could recover to 6865/6870.
• Further gains are possible to minor resistance at 6890/6900. I do not sell into short positions in a bull trend during the correction phase.
• But if you feel like this is a worthy trade then use a stop above 6910 and look for 20 to 30 point profit.
• A break higher can target 6918/20 & 6930/40.
• A high for the day is certainly possible here but shorts need stops above 6950.
• A break below 6815 risks a slide to strong support at 6790/80, we could see an ultimate low for the correction.
• Longs need stops below 6765.

Nasdaq futures

• Emini Nasdaq March futures initially bounced almost 200 ticks from 25300/25250 but could not fill the gap up to 25592.
• The break below 25190 could not quite test strong support at 25050/25000 & we made a low for the day just above at 25095.
• If we do test today, longs need stops below 24850.
• Just be aware that a break lower can target strong support at 24650/550 & longs need stops below 24400.
• This should be the main resistance of the day, so a break above 25610  should be encouraging targeting 25740/750 & 25850/860.
• Resistance at 25950/26050.
• Maybe a break higher opens the door to a retest of the all time high at 26399.
• However a break below 25190 tests strong support at 25050/25000 - longs need stops below 24850.

Emini Dow Jones futures

• Emini Dow Jones March broke support at 49050/48950 to hit 48611, holding just above the next important support at 48550/48500.
• On a test today, longs need stops below 48350.
• Watch for 1st resistance at 49000/49100.
• I always think selling into shorts in a bull trend is risky But if you try, stop above 49250.
• Above here targets 49328/49424.
• Just be aware that a break below 48350 can target a buying opportunity at 48050/47950 & longs need stops below 47700.