US stock market continue to trend higher

• Emini S&P December made a contract high at 5830 but reversed to 5778.
  The low & high for the last session were 5778 - 5830.

• Emini Nasdaq December is in a very slow 2 month bull trend, recovering from the late August collapse.
  Last session high & low for the last session were: 20188 - 20538.

• Emini Dow Jones December collapsed leaving a bearish engulfing candle on Wednesday but recovered most of the losses yesterday, so the candle was probably a false signal.
  Fortunately I ignored the signal & had us buying at first support at 42270/230.
  The long worked perfectly as we shot higher to 42594.
  Last session high & low for the last session were: 42231 - 42594.

Emini S&P September futures

• Emini S&P beat 5805 for a buy signal & hit the next target of 5830/35 but then unexpectedly reversed.

• We have moved very little this week & are struggling to push higher in severely overbought conditions but of course, shorts are a bad idea without a sell signal in such a strong longer term bull trend.

• So I have no strong signals but if we continue higher look for 5875/85, perhaps as far as 5900/05.

• My best suggestion on how to trade this market is to buy at support but be quick to take a profit in the low volatility conditions.

• First support at 5795/90 & longs need stops below 5785.

• Next support at 755/5770 should be stronger but longs need stops below 5765.

• Look for 10 to 15 points profit on these trades.

• Strong support at 5745/35 & longs need stops below 5730.
  Targets: 5755 & 5765.

Nasdaq September futures

• The break above the August high of 20217/251 hit my targets of 20330/340 & 20400/430, but not quite as far as 20600 just yet, with a high for the day yesterday at 20538.

• We made a low for the day at support at 20250/150 but longs need stops below 20050.

• Very strong support at 19900/800 & longs need stops below 19700.

Emini Dow Jones September futures

• Longs at first support at 42270/230 worked perfectly & longs need stops below 42050 if the level is retested today.

• We may start a consolidation phase now, where we trade in a sideways pattern to ease overbought conditions.

• A break lower risks a slide to 41900/800.

• We could have resistance again at 42650/680.

• However a break above 42700 can target 42800/820, perhaps as far as 43000/43100.