Stock markets collapse to important support levels

  • Emini S&P March collapsed on Thursday from strong resistance at 6010/6015
    The low & high for the last session were 5873 – 6014.

  • Emini Nasdaq March broke 21000 for a sell signal
    Last session high & low for the last session were: 20583 – 21386.

  • Emini Dow Jones March shorts at resistance at 43750/850 worked perfectly in the collapse from 43949.
    Last session high & low for the last session were: 43345 – 43843.

Emini S&P March futures

  • Emini S&P shorts at strong resistance at 6010/6015 worked perfectly with a high for the day exactly here before the collapse to 5985

  • The break below 5975 was expected & triggered losses as predicted for a retest of support at 5925/5915.
    Up to 1000 points potential profit on this trade.

  • Longs however stopped below 5900.

  • Again, the break below 5900 was a sell signal targeting 5865/60 for profit taking on shorts for another profitable trade on the day.

  • Emini S&P now tests very important trend line support at 5865/60.

  • Longs need stops below 5850. Targets: 5905, 5915

  • A break below 5850 is an important sell signal targeting 5815/10, perhaps as far as support at 5775/5765.

Nasdaq March futures

  • Emini Nasdaq could not quite make it to resistance at 21450/500 & crashed below support at 21200/100 this time for a sell signal targeting 21700 for profit taking.

  • However we fell as far as 20583.

  • A buying opportunity at 20450/350 & longs need stops below 20250.

  • A break lower sees 20350/450 act as resistance targeting 20050/2000 for profit taking before the weekend.

  • Longs at 20450/350 can target 20750/800 & even 20950/21000 is not out of the question.

Chart

Emini Dow Jones March futures

  • Shorts at resistance at 43750/850 worked perfectly as we collapsed to my target & the 16 month ascending trend line at 43100/43000.

  • We are only 66 ticks away as I write over night.

  • Up to 700 ticks profit potential on this trade.

  • A bounce from 43100/43000 is possible but longs need stops below 42850.

  • Gains are likely to be limited with first resistance again at 43750/850 & shorts need stops above 44000.

Chart

Source: https://www.fxstreet.com/news/stock-markets-collapse-to-important-support-levels-202502280809