S&P 500 Futures broke support at the recent lows of 5435/32, signaling a potential short-term bear trend. This break could trigger further losses, targeting 5405/00. A drop below 5395 would confirm the sell signal, with targets at 5375, 5355, and possibly 5335.
Believing in a sustainable bear trend, I've shifted from my long-term strategy of buying into weakness to selling into any recovery and breaks below support. This approach is proving effective.
Prices held at the 100-day moving average of 5342 on Friday, suggesting a likely bounce. I expect this rebound to reach resistance at 5420/30, presenting a selling opportunity. Short positions should have stops above 5445, with targets at 5390, 5370, and 5350.
Nasdaq September Futures
Nasdaq 100 Futures have broken key support levels at the 9-month trend line and the 100-day moving average of 18900/18850. The breach below 18725 marked another sell signal, with further declines breaking 18500 to reach 18385.
Today, I plan to sell on any recovery, targeting first resistance at 18550/600. Short positions should have stops above 18800 to account for increased volatility. Targets for these positions are 18400, 18250, and 18100. If prices continue higher, a strong sell opportunity arises at 19000/19100, with stops above 19200. Target levels for this scenario are 18800, 18600, and 18400. Ultimately, I anticipate prices reaching 18000/17900.
