Stock markets hit buy levels and bounce

1. Emini S&P December barely moving as we trade mostly sideways for 7 sessions. The low & high for the last session were 5756 - 5820. (To compare the spread to the contract you trade)

2. Emini Nasdaq December hit my target & buying opportunity at 42350/250. Last session high & low for the last session were: 20056 - 20287.

3. Emini Dow Jones December longs at 42350/250 worked perfectly, hitting both targets before the close. Last session high & low for the last session were: 42245 - 42715.

Emini SP 500 September futures

• Emini S&P moved very little last week, holding a 85 point range as we are struggle to push higher in severely overbought conditions. Shorts are a bad idea without a sell signal in such a strong longer term bull trend.

• So I have no strong signals but if we continue higher look for 5875/85, perhaps as far as 5900/05.

• My best suggestion on how to trade this market is to buy at support but be quick to take a profit in the low volatility conditions.

• HOWEVER unfortunately we over ran the next support at 5775/5770 hitting 5756 before seeing the expected rebound.

• If we continue lower today look for strong support at 5745/35 & longs need stops below 5730. Targets: 5755 & 5765.

• A break lower this week however could target 5695/90 & even support at 5680/70. Longs here need stops below 5660.

Nasdaq September futures

• The break above the August high of 20217/251 hit my targets of 20330/340 & 20400/430, but not quite as far as 20600 just yet, with a high for the week at 20538.

• We just held at support at 20250/150 yesterday but longs need stops below 20050.

• If we continue lower this week we meet very strong support at 19900/800 & longs need stops below 19700.

Emini Dow Jones September futures

• We wrote: I think gains are likely to be limited in severely overbought conditions but there is definitely no sell signal & I will remain a  buyer on any profit taking.

• We did dip as far as support at 42350/250 as predicted & this did prove to be an excellent buying opportunity but longs need stops below 42150 on a retest today.

• Targets of 42500 & 42650 were hit immediately, meaning we caught the low & high for the day.

• A break lower this week however risks a slide to 42000/41900 & longs need stops below 41800.