Technical Analysis Video – DayTradeIdeas
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 bounce to this level was a perfect sell opportunity again yesterday.
A potential drop of 200 points is on the cards. We have already seen a 150 point drop
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.
Yesterday we accelerated moves to the downside & the outlook remains negative.
Emini Dow Jones MARCH broke the 200 day moving average at 34900/850 as expected to hit the next target of 34560/540. Outlook remains negative.
Update daily at 07:00 GMT.
Emini S&P break of the neck line at 4590/80 is a significant sell signal as we hit all targets as far as 4450/45 for bumper profits. The only support for today is the 200 day moving average at 4430/20. A weekly close (or a break lower today of course) is another important medium term sell signal. First target would be 4360/50. However 4200 is definitely not out of the question.
Gains are likely to be limited as panic seems to build. First resistance at 4520/30. Shorts need stops above 4550. Strong resistance at 4590/4600 of course.
Nasdaq is building a minor negative trend in January with a break below the 200 day moving average at 15000/14950 another a significant sell signal. Losses accelerate to the downside as predicted. The break below 14830 is the next sell signal targeting the only support for today at 14430/14380. A weekly close below here is an important sell signal for next week. We could easily drop another 500 points.
Gains are likely to be limited with strong resistance at 15000/100 & again at 15400/500.
Emini Dow Jones likely to targets first support at 34050/33950. I am concerned about a break lower later in the day, for a sell signal eventually targeting 33200. Gains are likely to be limited with resistance at 34900/35000 & 35350/450.
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Jason Sen, Director