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S&P 500 E-Mini Recovers Ahead of Fed Decision: What's Next?

Published 11/01/2023, 05:31 AM
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Emini S&P December futures manage a recovery from last week's target of 4130/20 as far as strong resistance at 4205/15 with a high for the day exactly here. Shorts need stops above 4225.

A break higher however targets 4270/75.

Targets for our shorts are 4190 and 4180. Further losses can target 4152/48 and last week's low at 4128/23. A break below 4110 is the next sell signal for 4070/65, probably as far as 4020/10.

S&P Futures-4-Hr Chart

Nasdaq December futures recovers from the next target and strong support at 14100/14000 to first resistance at 14450/550. Shorts here are working with a high for the day exactly here again yesterday but we need stops above 14600. However, a break higher can target 14800/830.

Shorts at 14450/550 can target 14250, perhaps as far as strong support at 14100/14000 and longs need stops below 13950.Nasdaq Futures-4-Hr Chart

Emini Dow Jones December hit my sell opportunity 33000/33100 but overran to 33220. If you manage to hold the position, shorts can target 23900/870 (which actually held the downside perfectly yesterday) and 32600/550. Obviously, we have support at 32450/400 which could hold the downside again this week.

However, if we break below 32380 look for 32150/100 and even 31830/800.

A break above 33300 is a short-term buy signal targeting resistance at 33460/500.

Dow Jones Futures-4-Hr Chart

Dax (December futures) trying an unconvincing break above resistance at 14750/800 but we could perhaps target resistance at 15100/15200. A high for the day is expected here but shorts need stops above 15300.

Targets for the shorts: 14950 and 14850, perhaps as far as 14800.

DAX-4-Hr Chart

FTSE (December futures) 7-month sideways channel runs from support at 7260/40 up to 7760/80.

We have bounced from just above 7260/40 to hit the sell opportunity at 7370/90 with a high for the day exactly here. An easy 50 ticks profit was offered on the collapse to 7325.

We can try again today if this level is retested, with a stop above 7415. There is a better sell opportunity at 7440/60 if we unexpectedly continue higher. Stop above 7480.

The most important support of the week is at 7225/7200 where we meet the lows from March, July and August. A break below 7185 therefore should be an important longer-term sell signal and 7030/00 looks like a realistic target.FTSE-4-Hr Chart

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