Technical Analysis DayTradeIdeas

Technical Analysis DayTradeIdeas

Emini S&P March futures collapsed from 4830 leaving a serious bearish engulfing candle which took out 4 days of steady gains in just 3 hours. We saw one like this in Gold last week & it did trigger further losses until the Fed announced a potential U turn on rates in 2024.

On the cash index we just rejected the all time high in severely overbought conditions so I would take this as a sell signal & a potentially huge double top pattern. I would suggest selling a bounce to 4790/4800 with stop above 4830.

First downside target could be as low as 4680/60. A break below 4730 today should trigger a move towards this target & support area. I think it is worth trying a long at 4680/60 with stop below 4650.

Nasdaq March futures hit the next targets of 16880/900 & 17000 in the bull trend but reversed from just below 17100 leaving a serious bearish engulfing candle. Again this changes the short term outlook increasing risks to the downside. I would try a short at 16900/950 & stop above yesterday’s high at 17073.

A break below 16680 today could be taken as a sell signal targeting support at 16470/420. Longs need stops below 16350.

Emini Dow Jones March unexpectedly collapsed from 38012 leaving another serious bearish engulfing candle which also took out 4 days of steady gains. I would try a short at 37700/800 & stop above yesterday’s high at 38012.

A break below 37200 today is a sell signal & can target support at 36800/700. Longs need stops below 36700.

Daily Technical Analysis is provided by Jason Sen of Day Trade Ideas, who has been day trading since the late 1980’s. Jason has been a contributor of Traders Summit since the beginning. He primarily focuses on providing technical analysis of the financial markets, including stock chart patterns, Forex and Metals setups, and other useful technical analysis.

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Jason Sen, Director

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20231221