NASDAQ Outlook Remains Negative

Published 01/31/2022, 07:14 AM
Updated 07/09/2023, 06:31 AM
  • E-mini S&P stuck in a 170 tick range from 4280/60 up to very strong resistance at 4425/45 - shorting this level keeps working and eventually I think we will break to the downside but keep scalping the levels in the meantime.

  • NASDAQ holding first resistance at 14400/450 with a high for the day again on Friday, in what I think is a bear trend and therefore eventually we will break lower.

  • E-mini Dow Jones also very volatile of course.

  • Today's Analysis

    E-mini S&P shorts at resistance at the 200 days moving average and strong resistance at 4425/45 keep working. If you are scalping watch the levels of 4410/00, 4360/50 and also 4310/00. Below here re-targets 4270/60 before a test of the best support at 4200/4180. Bulls must defend this level or we are staring at a test of 4000. I think they will fail eventually. Will be interesting to see the monthly candle on the close on Monday. Just be aware that a break lower targets 4145/25 and 4090/80, probably as far as 4055, just to get started.

    Gains are likely to be limited with resistance at 4350/60, 4400/10 and of course very strong resistance at 4425/45. Shorts need stops above 4465. If we unexpectedly continue higher look for 4510/20.

    NASDAQ outlook remains negative in my opinion despite the fact that we keep bouncing to first resistance at 14400/450. A break higher this time can retest 14660/690. I really do not expect further gains but there is very strong resistance at 14800/850.

    Shorts at first resistance at 14400/450 target 14180/160, perhaps as far as 13950/900. Further losses obviously can retest 13750/700. However, I would not rely on this holding a second time. A break lower is a sell signal targeting 13490/460, perhaps as far as 13400/360. Eventually, we could meet an excellent buying opportunity at 13000/12900. Longs need stops below 12700.

    E-mini Dow Jones minor support at 34000/33900 but below here can target 33600/560 (a low for the day here on Friday), perhaps as far as 33350/300 before best support for today at 33050/33000. I do not think this will hold for long. Be ready to sell a break below 32900 targeting 32700 and probably as far as the best support for this week at 32500/300. Bulls must defend this level or we could see a test of 31000.

    Minor resistance at 34200/250 and 344500/550. Above 35650 looks for 34900/950.

    Video analysis:

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