Stock markets soar as predicted [Video]

Emini S&P futures

• Emini S&P June futures had a potential bullish, inverse head & shoulders pattern, with neck line at 6620.
• So bulls had to hold prices above here for the bullish pattern to play out.
• Longs needed stops below 6600 and this was unlucky, as prices did drop to 6573 before we shot higher to beat 6650/6660.
• The break above here was our buy signal initially targeting 6690/6700 & 6740/6750.
• We have hit the 100 day moving average at 6825 & reached 6831.
• So there is minor resistance at 6825/6835 although after the news I would not feel confident in a short position.
• A break above 6845 should be a buy signal targeting 6885/6890.
• I guess the downside is likely to be limited now with some support at 6775/6765 & longs need stops below 6750.
• A break lower risks a slide to support at 6710/6700.

Nasdaq futures

• Emini Nasdaq June futures bullish, inverse head & shoulders pattern, with neck line at 24170/24150 was tricky yesterday as we dipped to 23942.
• With the over night news we shot higher to 24310/350 & through resistance at 25550/25600 for a buy signal targeting 24940/990 then 25100/25150.
• All targets hit as we now look for 25250/300. We may pause here but shorts look too risky.
• A break above 25350 can target 25600/630.
• I guess the downside is likely to be limited now with some support at 25030/25000.
• However a break below 24900 risks a slide to 24800/750 & longs need stops below 24600.

Emini Dow Jones futures

• Emini Dow Jones June had the same head & shoulders pattern with neck line at 47000/47100.
• The break above here was a buy signal targeting 47250, 47500 & some minor resistance at 47900/48000
• An over night high exactly here as I write....& as I said yesterday: although we should struggle here, I think shorts would be risky.
• A break above 48100 should be a buy signal targeting 48400/500.
• A break above 48600 is a buy signal targeting 48850/48900.
• Support at 47300/47200 & longs need stops below 47000.