US stock market correction after recent warning signals
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Emini S&P June futures made a high for the day at resistance at 5200/5210 then collapsed to support at 5155/45 for 50 to 60 points profit taking. However we broke & held below 5140 which was an important short term sell signal. First target of 5100 has been hit as we look for 5080/70 & perhaps as far as strong support at 5050/40.
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Emini Nasdaq broke my buying opportunity at 18050/18000. We wrote: A break lower is looking likely eventually & would be a short term sell signal targeting 17840/830 & 17680/670 for profit taking on shorts. If you reversed in to a short on the break, we have hit the 1st target of 17840/830.
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Emini Dow Jones June futures formed a 3rd bearish engulfing candle on the daily chart before a collapse on Friday to 38132. Yesterday I wrote: I believe the other 2 markets will follow the Dow Jones lower. Looks like I was right again!!!
Emini S&P: headed lower breaking 5140. First target would be 5100 then 5080/70 & strong support at 5050/40.
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Resistance at 5145/55. Shorts need stops above 5160.
Nasdaq June futures: collapsed breaking my buying opportunity at 18050/18000 for a short term sell signal targeting 17840/830 & 17680/670 for profit taking on shorts.
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Further losses are possible however as far as a buying opportunity at 17640/580 & longs need stops below 17500. Targets: 17830, 17950
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Obviously we have strong resistance at 18,000/18,100 & shorts need stops above 18,200.
Emini Dow Jones June broke support at 38520/460 this time targeting 38250, 38100 & 38000, which were hit yesterday.
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However losses as far as 37500 cannot be ruled out.
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We did have resistance at 38460/500 & shorts needed stops above 38600. We over ran a little to 38,637 but if you held the short position it certainly did work.
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