Are stock markets about to crash?

Jason Sen DayTradeIdeas.co.uk

Emini S&P futures

Emini S&P June futures - yesterday I warned: Just be aware that we are severely overbought.

''I am not suggesting we are about to see a significant move to the downside - there is no evidence of that and markets can remain overbought for a long time in a strong bull trend.''

It was not a surprise to see prices lower yesterday but unfortunately, my support at 7390/7380 was just a little too high & we dipped as far as 7363.

Frustrating as I wanted to capitalise on weakness to jump in to longs.

However, I will stick with support at 7390/7380 today...there's a good chance that today's low will be slightly higher than yesterday.

Longs need stops below 7365.

However a break lower risks a slide to support again at 7330/7320 & longs need stops below 7300.

For now, a break above 7460 is always possible in the strong bull trend to target 7490/95.

Nasdaq futures

Emini Nasdaq June futures edged to a new all time high at 28480 as we look for 29550/590 eventually.

Again I warned that we may need to consolidate to ease overbought conditions so it was no surprise to see us test support at 28950/28850.

Hopefully the bounce from 28750 kept us long for the expected bounce which reached 29310 as I write.

Further gains obviously can retest the all time high at 29480.

On a break higher we target 29720/780 then 29950/30000.
We could find support again at 28950/28850 & longs need stops below 28750.

Below here meets better support at 28500/28400 & longs need stops below 28300.

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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