Emini SP500 first resistance at 2840/50

Jason Sen DayTradeIdeas.co.uk

Emini SP500_Nasdaq

Emini S&P & Nasdaq JUNE Futures

Emini S&P we wrote: Holding very strong resistance at 2875/85 indicates a potential head & shoulders being formed.

We topped exactly here. We watch the neck line at 2795/90 now, with a break below providing the confirmation sell signal. (A weekly close below tomorrow would be a nice weekly confirmation).

Nasdaq holding gains but could still be forming a 1 month head & shoulders top. We held support at 8850/40.

Daily Analysis

Emini S&P first resistance at 2840/50. Holding very strong resistance at 2875/85 indicates a potential head & shoulders being formed. Try shorts with stops above 2895. A break higher is a buy signal targeting 2905, 2909/10 & 2920/23.

Holding 2840/50 targets 2830/25 & minor support at 2817/15 & head & shoulders neckline at 2795/90. A break below 2780 therefore confirms the head & shoulders formation for an important medium term sell signal.

Nasdaq appears to have stalled but no clear sell signal yet. Minor resistance at 9010/20 then a retest of this week’s high at 9050/56. A break higher kills chances of a head & shoulders top forming. We look for 9110/20 before the 9140/45 recovery high. Watch for a potential double top sell signal here. A break higher is a buy signal.

Best support at 8940/30. Longs need stops below 8910. A break lower targets 8860/50. Below 8830 is a sell signal targeting 8810/00 & 8760/50, perhaps as far as 8710/00.

Trends

Weekly outlook is positive

Daily outlook is positive

Short Term outlook is neutral

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

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