US stock markets hold within short term consolidation patterns [Video]
|Emini S&P December futures holding both support at 4500/4490 & strong resistance at 4550/60 as we form a downward sloping channel.
Shorts at 4550/60 worked perfectly as prices collapsed from 4566 to my target & support at support at 4500/4490 as predicted, with a low for the day exactly here. Can't do better than that!
Shorts at 4550/60 can retarget 4500/90. If we continue lower this week however look for 4465/60 & 4450. Eventually we could retest the 3 month trend line at the lower end of the range at 4400/4380.
Holding support at 4500/90 can target resistance at 4550/60 of course.
Nasdaq December futures we wrote: are stuck in the middle of a 2 month triangle consolidation pattern from support at 15360/330 up to resistance at 15730/770. Trade the range & wait for a breakout.
In fact these levels almost exactly matched Friday's high & low for the day. Trade the levels while we wait for a breakout.
A break below 15290 today is a sell signal targeting 15240/230, perhaps as far as 15130/100.
A break above 15800 can target 15850/860 & 15910/930.
Emini Dow Jones December fooled me with the break above the upper trend line resistance at 35120/160 before collapsing back below 35070.
On Friday we lost all of Thursday's strong gains. We have traded is a volatile sideways consolidation for a month. At this stage I must wait for a clear pattern or trend to identify a low risk opportunity.
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