Emini S&P dragonfly doji on the weekly chart coupled with potential double top as we hold the all-time high of 3158 risks significant losses to the downside. Obviously shorts need stops above 3160. Yesterday we headed lower as expected to minor support at 3132/30 and bottomed exactly here.
Nasdaq we wrote: severely overbought in the short term and although there is no sell signal and shorts in a bull trend are a very bad idea, I cannot help thinking are could head lower this week. Minor support at 8383/80 then strong support at 8360/55 could hold the downside today.
We headed lower as predicted to bottom almost exactly at 8360/55.
Emini S&P double top risk in place now which targets minor support at 3132/30 and 3120/15. A break below 3110 is another sell signal targeting 3100/3095. Try longs with stops below 3085.
Next target and buying opportunity at 3070/67, with stops below 3060.
Bulls now need a break above the all time high of 3158 for the next buy signal targeting 3166/68 and 3175/77.
Nasdaq held strong support at 8360/55 as predicted yesterday. A break below 8345 today however targets a buying opportunity at 8325/20, with stops below 8305. Next downside target is then 8245/40. Try longs with stops below 8230.
Minor resistance at 8380/83 before a retest of yesterday’s high at 8422/27 and the all time high of 8454/58. A break higher targets 8485/90.
Trends
Weekly outlook is positive
Daily outlook is positive
Short Term outlook is neutral