Bullish engulfing candles on the daily chart for stock markets

Emini S&P futures

• Emini S&P March futures broke towards strong support at 6740/6730 but we made a low for the week 11 points above here so it was frustrating that we didn't get this buying opportunity.
• A huge rally hit targets of 6810/20 & minor resistance at 6850/6860. Then the break higher hit my next targets of 6890 & 6915/25.
• In a huge move we rallied over 200 points from Thursday's low to hit 6965.
• I stuck with my strategy of buying into support levels
• Unfortunately we didn't quite reach my buy level. I hope 1 way or another you managed to capitalise on the expected move higher.
• Of course bulls remain in full control of this market despite the negative 'AI bubble' narrative, which I simply do not believe.
• We now have a bullish engulfing candle from Friday's price action which gives me further reason to believe that eventually we will break to new highs.
• Until we do actually break above 7043, and see a daily close above here, we remain in a sideways consolidation.
• I still think the downside will be limited and today we should have minor support at 6920/6910 then good support 6860/6850, should we fall this far.

Nasdaq futures

• Emini Nasdaq March futures broke lower to very strong support at 24200/24000.
• We wrote: A low for the day correction is possible here but longs need stops below 23850.
• Unfortunately we didn't quite get to buy exactly at my buy level, with a low for the correction just 40 points above at 24239
• If you did manage to jump into a long position at some stage on Friday we hit all my targets as far as 24900/25000.
• On Friday we wrote: Just be aware that a weekly close above 25170 would be very positive for the start of next week.
• Although we closed 25163, I still take this as a positive start for this week especially as we formed a bullish engulfing candle.
• However, we do have to overcome some minor barriers such as the 2 month trend line & 100 hour MA resistance around 25230/25250, then the 100 day moving average at 25330.
• Therefore I'm going to take a break above 25390 as a clear buy signal initially targeting 25550/25650.
• Once we get through 25650 we could move quite quickly to 25950/26000.
• First support at 25990/25900 & longs need stops below 25800.
• As long as we hold above here the bulls remain in control but a move back below 25800 comes with the risk that we remain in a sideways consolidation.

Emini Dow Jones futures

• Emini Dow Jones March leading the way forward as we beat the upper end of the recent range at 49795 and break to a new all time high above 50000.
• The close at the high of the day and the high of the week should trigger further gains this week with my first target at 50500/50600.
• we should now have strong support at 49900/49800 & longs need stops below 49650.
• A break below 49650 could bring us back into sideways consolidation trading so I certainly hope this does not happen!!