1. Emini S&P December made it as far as 5918 but has hit profit taking in overbought conditions as we wipe out Monday's strong gains.
- There is a good chance we will consolidate and trade sideways for a short period to ease overbought conditions.
- Definitely, no sell signal though.
- The low & high for the last session were 5853 - 5892
(To compare the spread to the contract you trade)
2. Emini Nasdaq December should find support at 20250/200 and longs need stops below 20150.
- Last session high and low for the last session were: 20206 - 20398.
3. Emini Dow Jones December collapsed from a new all-time high at 43445 leaving a bearish engulfing candle on the daily chart on Tuesday but we recovered yesterday.
- Last session high & low for the last session were: 42937 - 43369.
Emini S&P December Futures
- Emini S&P managed to bounce from support at 5850/40 (I wasn't sure it would).
- We reached 5892 and obviously, bulls want to retest this week's all-time high at 5918.
On a break higher look for 5935/40. - A break below 5840 targets a buying opportunity at 5810/5790. Longs need stops below 5780.
Targets: 5830, 5850, perhaps as far as 5870. - I cannot think about short positions in the strong longer-term bull trend on any recovery, despite overbought conditions. But it is possible that we trade in a sideways range for a while to consolidate gains, so I will be watching for a pattern to form.
Nasdaq December Futures
- Emini Nasdaq Key support at 20250/200 today from short-term moving averages and a 5-week ascending trend line.
Longs need stops below 20150. - A break lower risks a slide to a buying opportunity at 19950/850 and longs need stops below 19700.
Emini Dow Jones December Futures
- Emini Dow Jones formed a Bearish engulfing candle on the daily chart on Tuesday but we bounced from support at 43000/42900 to 43369.
- Longs on a retest of support at 43000/42900 today need stops below 42800.
- A break lower should target a better buying opportunity at 42660/620.
A good chance of a low for the day but longs need stops below 42500.
