Head and shoulders triggered stock market sell signal [Video]

Jason Sen DayTradeIdeas.co.uk

Emini S&P futures

Emini S&P break below 6665 was an important sell signal confirming the formation of a head & shoulders sell signal.
This could trigger a 200 - 250 point loss in the days or weeks ahead.
A high for the day yesterday at t 6588, just 2 points from strong resistance at 6690/6700.
1st target for shorts is the 100 day moving average at 6570 today.
Below here tests very important support at 6450/6440.
I will reassess the market if this level is hit.
First resistance at 6660/6670 today & shorts need stops above 6680.
Further gains are unlikely but we meet resistance at 6700/6710 & shorts need stops above 6720.

Nasdaq futures

Emini Nasdaq broke the neckline to a 2 month head & shoulders pattern at around 24850 for a sell signal as predicted.
A high for the day exactly at strong resistance at 24850/24950 with a dip to 24376 meaning the trade worked perfectly.
The break below 24600 is another sell signal & targets an excellent buying opportunity at 24200/24000.
Longs need stops below 23850.
Gains are likely to be limited with a sell opportunity at 24800/24900 & shorts need stops above 25050.

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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