US Index futures – technical analysis & trade levels.
Emini S&P, Nasdaq & Dow Jones
Emini S&P June futures headed lower as expected after the bearish engulfing candle on Monday & made a low for the day exactly at my buying opportunity at 5240/35. Prices then immediately bounced to my 1st target of 5260.
Emini Nasdaq headed lower yesterday, following the S&P.
Emini Dow Jones June futures headed lower after forming a bearish engulfing candle & headed for my buying opportunity at 39350/300. We made a low for the day only 18 ticks above here.
We await the all important US non farm payroll & average earnings release on Friday.
Emini S&P: bearish engulfing candle was a strong warning to bulls in severely overbought conditions & prices collapsed to my target & support at 5240/35 as expected.
We hit the first target of 5260 & look for 5280 today for profit taking.
We could find resistance at 5290/95 & shorts need stops above 5305.
We should also find support again at 5240/35 & longs need stops below 5230.
The downside is still expected to be limited at this stage, although I will be watching for a pattern to build suggesting a deeper correction. However this will take days & probably weeks to build if this does happen. This period will be difficult to trade & will see increased volatility with mostly sideways trading markets.
A break below 5225 risks a slide to a buying opportunity at 5175/65.
Longs need stops below 5155.
Nasdaq June futures: headed lower to test strong support at 18330/300 & managed to hold above 18200.
Targets for our longs at 18330/300 are 18400/420 & 18500/510.
Further gains can retest the all time high at 18690/18709.
If we do see a convincing break higher we can look for 18810/850 & 18910/930 then 19000.
We should have strong support again at 18330/300 & longs need stops below 18200.
A break below 18200 is a sell signal for today targeting 18050/18000. However just be aware that it is possible that we continue lower as far as 17750/700 in the days ahead (if we do break lower).
Emini Dow Jones June.
The break below 39600 was a sell signal yesterday targeting support at 39350/300. A low for the day was expected here but we held just 18 ticks above here. Today longs here need stops below 39200.
Longs here today can target 39590/600 & 37730/760 for profit taking.
A break below 39200 however is a sell signal targeting 39050/39000 & perhaps as far as a buying opportunity at 38700/600. Longs need stops below 38450.
With almost 40 years experience, Jason Sen began trading his own account on the floor of the London International Financial Futures Exchange at the age of 19, in 1987. He spent 15 years specialising in market making interest rate and index options on floor then moved on to trading forex on screen at the turn of the millennium. He is also recognised as a skilled technical analyst developing this expertise for the last 20 years.
His extensive trading experience from the LIFFE trading floor to screen trading and deep understanding of technical analysis give him a thorough understanding of the financial markets and the factors that drive them.
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