Stocks correct to the downside

Jason Sen DayTradeIdeas.co.uk

Emini S&P shorts at resistance at 6845/6855 worked perfectly with a high for Wednesday at 6857 & a test of 1st support at 6800/6795.

The break below 6790 tested strong support at 6770/6760 & longs were stopped below 6747.

The break below 6747 risks a slide to 6700/6690.

Gains are likely to be limited in this downside correction phase.

Resistance at 6810/6820 & shorts need stops above 6830.

A break higher can target 6860/6870.

Strong support at 6680/6670 & longs need stops below 6660.

Emini Nasdaq shorts at resistance at 25850/25890 worked perfectly with a high for the Wednesday here & a slide to support at 25600/25500.

The break below 25450 retested the correction low at 25300/280.

Longs stopped below 24750 for a sell signal targeting 24600/24550 & we fell as far as 25200

We look likely to target strong support at 25050/24950 with a low for the day expected & even a low for the correction is possible.

However a daily close below 24800 is a sell signal for the start of next week & we can target 24600/24550.

Longs at strong support at 25050/24950 can target 25250/300 & 2550/25600.

25800/850 is not out of the question on the bounce.

Emini Dow Jones tests support again at 47100/47050 but longs need stops below 46900.

On a break below 46900 look for 46650/46550.

We should have strong support at 46500/46400, with a low for the correction possible here but longs need stops below 46250.

Author

Jason Sen

DayTradeIdeas.co.uk

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