US stock markets hit major support levels on Friday
|Nasdaq futures
- Emini Nasdaq tested the 100 day moving average at 24250 & the longer term Fibonacci support at 24200/24000.
- We wrote: 'This could not be more important today. In short term oversold conditions a bounce from here can target strong resistance at 24500/24600.'
- Although we did momentarily break below 23950 we recovered quickly & if you are in my telegram group I tried to keep you in the long trade, as we identified a very rare broadening bottom pattern on the H1 chart.
- The weekly close above 24200 is obviously positive.
- Although we have not fulfilled the measured target for the head & shoulders pattern, having held the important support at 24200/24000, it's possible the downside correction is over.
- Holding above 24500 is a further positive signal for Monday targeting important resistance at 24850/25000.
- There are short term moving averages here, plus it is the neck line to the head & shoulders.
- If bulls can clear 25150 there are back in full control for the rest of this week & the next target should be 25400/500.
- However a break below 24900 is a sell signal targeting 23800 & 23600/550.
Emini Dow Jones futures
- Emini Dow Jones collapsed to strong 100 day moving average & 38.2% Fibonacci support at 45900/45700.
- A low for the week exactly here & this support is important again for this week.
- We wrote: This is very important & a bounce from here in short term oversold conditions targets first resistance at 46350/450. We made it as far as 46656
- Further gains are expected this week towards 46800/850.
- A break above 46950 is the next buy signal targeting 47200/300.
- A break below 45500 is a sell signal targeting 45300 & 44950/850 for some profit taking on shorts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.