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 & 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
Emini Nasdaq December should find support at 20250/200 & longs need stops below 20150.
Last session high & low for the last session were: 20206 – 20398.
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 & 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
Key support at 20250/200 today from short term moving averages & a 5 week ascending trend line.
Longs need stops below 20150.
A break lower risks a slide to a buying opportunity at 19950/850 & longs need stops below 19700.
Emini Dow Jones December futures
Bearish engulfing candle formed 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.
Source: https://www.fxstreet.com/news/a-small-recovery-for-us-stock-markets-202410170636