Emini SP500_Nasdaq
Emini S&P September Futures we wrote: reaches resistance at 3 week highs at 3193/96. Abreak above 3200 targets 3210 & resistance at June recovery high at 3227/31. Shorts needs tops above 3235.
We crashed 85 points from 3226 leaving a potential double top sell signal. We broke first support at 3175/73 with stops below 3165 activated & hit the next target & support at3152/48. Yesterday's candle is a clear bull trap in overbought conditions, dramatically increasing risks to the downside for this week.
Nasdaq September Futures continued higher to test the big 11,000 number, reaching a newall time high 11058. Finally severely overbought conditions kicked in, as we crash 500 points,leaving an important negative candle. Bulls who bought since Thursday now trapped in losing positions & this should weigh on any recovery attempts today.
Daily Analysis
Emini S&P bulls will be feeling uncomfortable this morning. Holding strong resistance at 3160/70 is negative targeting 3148/45, perhaps as far as minor support at 3135/33. On further losses look for 3128/26 & strong support at last week's low of 3110/05. Try longs withstops below 3100. A break lower is an important short term sell signal.
Shorts at strong resistance at 3160/70 stop above 3180. A break higher targets 3200/05 with resistance again at June recovery high at 3227/31. Shorts need stops above 3235. A break higher is a buy signal of course.
Nasdaq negative candle signals a neutral/negative outlook to ease severely overbought conditions. It is now risky to hold longs after what could be considered a short term sellsignal. Holding first resistance at 10665/695 targets minor support at around 10560 & last week's mid week low at 10505 before strong support at 10430/410. Brave bulls, who feel theneed to buy the dip can try longs with stops below 10350. A break lower targets 10300/290 then support at 10220/200.
Shorts at first resistance at 10665/695 stop above 10760. A break higher targets resistance at 10870/900.
Trends
Weekly outlook is positive.
Daily outlook is positive.
Short Term outlook is neutral.
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