US stock markets break support to trigger sell signals

Emini S&P September futures

• Emini S&P broke support at recent lows of 5435/32 for a sell signal & I did notify you in the Telegram group as it happened.

• We wrote: (this) should trigger further losses as we start to build what could be a short term bear trend, targeting 5405/00...A break below 5395 is the next sell signal targeting 5375 & 5355, perhaps as far as 5335.

• What a call with a low for the day almost exactly at 5335!! Obviously the position was helped by higher than expected unemployment but if you ran the position, that was a hefty profit on the day. (You may have seen my short positions posted in the free telegram group).

• I believe we are building a sustainable bear trend so I have already switched from my longer term strategy of buying in to weakness, (despite my trend following principles) to selling in to any recovery & selling on a break below support...and it is working.

• Prices held the 100 day moving average at 5342 on Friday so a bounce from here is likely & I hope we can reach resistance at 5420/30 for a sell opportunity. Shorts need stops above 5445. Targets: 5390, 5370, 5350.

Nasdaq September futures

• Emini Nasdaq broke important support at the 9 month trend line & 100 day moving average at 18900/18850 & again I did notify you in the subscriber’s Telegram group.

• The break below 18725 was another sell signal & we even broke 18500 to hit 18385.

• I am looking to sell if we recover today with first resistance at 18550/600. Shorts need stops above 18800 (I must widen stops as volatility increases). Targets: 18400, 18250, 18100

• If we continue higher we have a good sell opportunity at 19000/19100 & shorts need stops above 19200 Targets: 18800, 18600, 18400. Eventually I do see prices reaching 18000/17900.