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.
Emini S&P MARCH completed the right should of a small head & shoulders pattern breaking the neck line is at 4590/4580 for a medium term sell signal.
A potential drop of 200 points is on the cards.
Nasdaq MARCH I warned that we could be starting a short term bear trend – that situation is certainly developing with lower highs on bounces & lower lows on each down move.
Emini Dow Jones MARCH only edging lower compared to the other 2 markets. However we are holding below the 100 day moving average at 35335 which adds a negative bias.
It is clear certainly more clear now that bears are gaining in confidence & increasing their attacks. However there will always be buyers seeking bargains at lower prices & they will jump in aggressively.
Update daily at 07:00 GMT.
Emini S&P break of the neck line at 4590/80 is a significant sell signal. Targets initially are 4525/20/, 4495/90, 4450/45.
Strong resistance at 4590/4600. Shorts need stops above 4615.
Nasdaq is building a minor negative trend in January targeting 15550/500, 15350/320 & retest of last week’s low at 15170/150. Further losses however are being seen towards the 200 day moving average at 15000/14950. A break below here is a significant sell signal & we could see losses accelerate to the downside. A break below 14830 is the next sell signal.
Bulls need a move above 15350 today but we still run in to resistance at 15480/510 & strong resistance at 15650/700.
Emini Dow Jones breaks the 100 day moving average at 35350/330 to test less important Fibonacci support at 35120/110. A break below 35090 therefore should be a sell signal targeting the 200 day moving average at 34900/850. Failure here (likely eventually) risks a slide to 34560/540. Strong resistance at 35450/550. Second resistance at 35760/790.
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No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realised. All reports and information are designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives.
Jason Sen, Director