Head and shoulders patterns forming? [Video]

Emini S&P futures

• Emini S&P June futures held 9 points above support at the 7350/7330 area.
• The bounce hit my targets of 7400 & minor resistance at 7423/28.
• We only held here for a couple of hours, and the retracement only reached 7407.
• I said, I still think shorts could be risky. On a break above 7435 look for 7445 & 7460/65.
• so it was not a surprise to see another push higher to my next targets with a high for the day only 11 points above 7465.
• I had predicted a high for the day at 7460/65, so I am happy with this call.
• if you manage to enter a short position we then collapsed back to 7411, So there was a good profit potential on the trade
• I still think that we are most likely to enter a consolidation phase where the market will start reversing back and forth instead of trending higher as it has been.
• I think there is a good chance that we start to range from 7350/7330 up to 7520/7530 in the longer term
• Perhaps in the short term we will range from 7360 up to minor resistance at 7460/70.
• Inside of this range unfortunately I can't find trades which is common in a sideways consolidation
• Longs at support in the 7350/7330 area need stops below 7300.
• I would take a break below here as another sell signal initially targeting 7280/75 then 7255/50 & even 7225/20 is possible.
• But I do think we could have very strong support around 7200/7185 if we fall this far.
• A break above 7475 should be a buy signal targeting 7490/95 for profit taking.
• However a break above 7500 can target a sell opportunity at 7520/7530 with stop loss above 7545.

Emini Nasdaq futures

• Emini Nasdaq June futures managed a recovery & by the early morning bulls managed to hold prices above the 29100/29000 area to regain control.
• A strong recovery reached 29743. I know
• We should find support today at 29300/29200 & longs need stops below 29100.
• A break lower risks a retest of support at 28950/28850 & longs need stops below 28750.
• A break below 28750 is likely to trigger further losses to what should be strong support at 27950/900.
• I will remain a buyer of dips to strong support levels at this stage.
• I do not think the markets are about to see a crash.
• Longs need stops below 27700.
• I think there will be bulls waiting on the sideline for such an opportunity & the bounce could be swift and strong.
• A bounce from the support level could take us back to the 29000 area.
• However if we do break below 27700 we could fall as far as the 27000 area.
• Holding support at 29300/29200 re targets 29743, perhaps as far as 29780/800.
• A break above here can target strong resistance at 30,000/30100 & shorts need stops above 30200.