Daily Forecast - 06 January 2016
S&P March contract
Emini S&P as yet unable to beat strong resistance at 2016/17. This is the main challenge for bulls today of course but shorts need stops above 2020. A break higher targets 2027/28 but if we continue higher look for a selling opportunity at 2038/39. Shorts need stops above 2043. Just be aware that an unexpected break higher could target strong resistance at 2055/56.
First support at 2004/03 could hold the downside but below here meets minor support at 1995. Further losses could test important 50% Fibonacci & 7 week trend line support at 1986/85. As we know this is the last line of defense for bulls but longs need stops below 1980. A break lower is a sell signal & targets 1972/71 then 1964/63. If we continue lower look for strong support at 1958/56.
E Mini Nasdaq March contract
Emini Nasdaq holding below 4460 risks a retest of this week's low at 4430. Watch for the most important support of the day at 4423/20. If this fails the last line of defense for bulls is trend line support at 4405/00. A break below 4390 therefore is a sell signal to target 4370/65 then 4360. If we continue lower look for 4349/45.
First resistance at 4470/73 but above here could target stronger resistance at 4495/4500. Shorts need stops above 4510 with a break higher to target minor resistance at 4518/20 then strong resistance at 4532/37. Shorts here need stops above 4544.
Emini Dow Jones March contract
Emini Dow Jones minor resistance at 17050/060 but stronger resistance at 17100/105 is likely to be the main challenge for bulls today. A break above however could then target trend line resistance at 17195/17205 where we watch for a high for the day. Shorts need stops above 17260. We then meet minor resistance at 17285/295 but if we continue higher look for a selling opportunity at 17380/390, with stops above 17430.
First support at 16990/980 is only minor but 16910/900 remains quite good support. Longs need stops below 16860. A break lower then targets 16795/790 & perhaps as far as 17760. If we continue lower look for 16680.
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