Nasdaq: A break higher 11800 is a buy signal

Emini S&P December futures 1 or 2 steps forward then 1 step back. We held 3870/60 on the downside but are only consolidating as I write over night.

Nasdaq December highly volatile as we collapsed on Thursday, rocket on Friday & reverse again on Monday.

Emini Dow Jones futures consolidates gains, holding the first downside target of 32650/600.

Daily analysis

Emini S&P December holding 3870/60 on the downside to re-target the 100 day moving average at 3910/20 in quiet conditions. Again this is key to direction. A break above 3930 should be a buy signal targeting 3950/60, perhaps as far as resistance at 4000/4010 this week. Watch for a high for the recovery here & a resumption of the bear trend.

Very minor support at 3870/60, with better support at 3830/20.

Nasdaq December strong resistance again at 11700/750. Shorts need stops above 11800. A break higher is a buy signal with 11750/700 then acting as support to target strong resistance at 11950/12000.

First support at 11450/400. Longs need stops below 11350 (my level as a little too high yesterday). Better support at 11250/200. Longs need stops below 11150.

Emini Dow Jones holding the 200 day moving average at 32575. The bounce is likely to retest last week's high & first resistance at the 500 day moving average at 33000/33100 as we become overbought on the daily chart. Even after the 4000 tick recovery, we still remain in a 10 month bear trend. I am not brave enough to call a high for the bounce yet, with such strong momentum, but I will watch for any negative signals here. A break above 33200 can target 33450.

Failure to beat the 500 day moving average at 33000/33100 targets 32600/550, perhaps as far as 32350/250.