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NASDAQ: A Break Below 10800/600 Is A Buying Opportunity

Published 05/23/2022, 07:39 AM
Updated 07/09/2023, 06:31 AM
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US30
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US500
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E-mini S&P JUNE could be finding a low for the correction—at this stage at least. It should be worth trying longs on a retest of 3830/00. Longs need a wide stop below 3750, but the risk could be worth it because the first target for the bounce is 3920/40, then first resistance at 4000/4020, giving us up to 1:4 risk vs reward.

Strong resistance at 4030/50, but shorts need stops above 4080. A break higher is a decent buy signal initially targeting 4110/30 then 4210/30. A break below 3750 signals another potential 200 point drop.

NASDAQ JUNE held the next downside target of 11500 and closed above the previous May low of 11689/704. This could signal a more sideways direction for this week to ease oversold conditions, but it is no buy signal.

Gains could be seen as far as first resistance at 12180/280, but a high for the day is possible. Above 12350 however opens the door to 12500 and strong resistance at 12700/800. Shorts need stops above 12950. A break below 11500, however, targets 11300 and 11000, probably as far as a buying opportunity at 10800/600. Longs need stops below 10400.

E-mini Dow Jones JUNE managed a strong bounce from my 30550/500 target. I would not rule out a recovery for this index too this week. Holding above 31150/30950 allows a recovery to 31500/550, perhaps as far as resistance at 31700/800. Watch for a high for the day. Shorts need stops above 31950.

A break below 30900 risks a retest of support at 30600/500. There is further trendline support at 30400/300. A break below 30000 this week is a sell signal with another 500 to 1000 tick loss possible.

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