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 gains could not be sustained as we tried to retest the all time high & prices collapsed in a straight line to 4650. The negative candle on the daily chart increases risks that we have formed a negative double top for a sell signal.
Nasdaq MARCH unexpectedly shot higher on the Powell minutes as far as strong resistance at 16400/450. Shorts here worked perfectly with a high for the day.
Emini Dow Jones MARCH could be building a very large head & shoulders reversal pattern over the past 5 months (despite the mid week bounce) but it could take a few weeks to complete the right shoulder.
Update daily at 07:00 GMT.
Emini S&P risks are increasing to the downside as selling pressure emerges on a retest of the all time high. I am seeing potential head & shoulders patterns in other indices so I am increasingly concerned about a significant move to the downside. First support at 4650/40. Be ready to sell a break below here targeting 4620/10, perhaps as far as 4590/80. Further losses perhaps next week are likely to target 4550/40.
If you want to but the dip then look for longs at first support at 4650/40 to target 4680/85. I think gains are likely to be limited but above here we can look for 4700, perhaps as far as 4720/25. Bulls need a weekly close above 4745 to kill the negative signals.
Nasdaq shorts at strong resistance at 16400/450 work on the slide as far as support at 16850/750. I think longs are risky but if you try, stop below 16725. (Small risk). A break lower is a sell signal targeting 15560/530. This is the best chance of a low for the day but a weekly close below here is a sell signal for the start of next week.
Gains are likely to be limited with first resistance at 16180/220. Unlikely but if we continue higher expect strong resistance again at 16400/450. A break higher is a buy signal targeting 16600/650 before a retest of the all time high at 16767.
Emini Dow Jones first support at 35600/550, second support at 35300/35200, although the outlook is quite negative so be careful if you are buying the dip. A break lower is a sell signal targeting 35000, perhaps as far as 34700.
Holding first support at 35600/550 allows a recovery to 35800, perhaps as far as the 36000/100 high for this week. An unexpected break higher targets 36150 before a retest of the March high at 36330.
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Jason Sen, Director