US stock markets hit our buying opportunities

Emini S&P futures

• Emini S&P break below 6747 hit the next target of 6700/6690 & strong support at 6680/6670.
• Longs needed stops below 6660 - my stop was a bit tight there in such volatile conditions & we over ran briefly to 6656 but if you managed to hold the long position we saw an immediate 100 point recovery to 6765.
• There is a good chance we have seen an end to the downside correction already but we do have resistance at 6770/80.
• A rejection on the 1st test would not surprise & we could tumble to 6730/20.
• A bounce from here confirms that bulls are regaining control.
• However a break below 6710 risks a retest of important support at 6680/6670 & of course this time longs need stops below 6650!
• Just be aware that a break below 6650 is a short term sell signal.
• A break above 6790 is a buy signal targeting 6840/50 today.

Nasdaq futures

• Emini Nasdaq was expected to target strong support at 25050/24950 with a low for the day expected & even a low for the correction is possible.
• I warned that a daily close below 24800 was a sell signal but it did not take long for the expected strong bounce to materialise, although we did over run to 24709 initially so it was nerve wracking.
• The bounce ran out of time before hitting my 1st target of 25250/300, but we got close.
• We closed at the high for the bounce at 25228 which should be a good omen for the open this week.
• The key test now is first resistance at 25300/25400.
• Like Emini S&P resistance at 6770/80, a rejection of 25300/25400 on the 1st test would not surprise & we could dip to 25100/25000.
• Strong support at 25000/24900 & longs need stops below 24750.
• A break above 25450 is a buy signal for today targeting 25550 then 25700/25800.
• A high for the day is likely here but shorts need stops above 25900.
• A break above 25900 this week should confirm that downside risks have dissipated and bulls are back in full control.

Emini Dow Jones futures

• Emini Dow Jones headed for a test of strong support at 46500/46400, with a low for the correction possible here but we made a low for the day at 46574 - just missing the buying opportunity.
• I doubt we will see that level again - I think the correction low is in & the bulls will regain control with much problem.
• However just be aware that longs need stops below 46250.
• The main challenge for bulls is resistance at 47150/47300.
• A break above 47350 should be a buy signal targeting 47580/610 today.