Emini S&P March futures reversed from 5059, just 7 points from the all time high at 5066, set on Monday last week.
Obviously a break above here is a buy signal & initially targets 5090/94.
However we do have a potential double top pattern after the rejection on Friday. It's only small & would require a break below last week's low at 4936 for confirmation of a short term sell signal but if you are looking for an excuse to short the index this is the best one for a while. Shorts need stops above 5070, so the downside risk is small & if we do break below 4935 we can target 4850/40 so there is a profit taking 3:1 risk vs reward.
In the short term, for scalpers we have some support at 4985/75 (with a low for the day at 4968 yesterday) but a break below 4965 today risks a slide to 4930/25, perhaps as far as 4900/4895.
Nasdaq March futures reached 18026, just shy of the all time high at 18100/120.
A break above 18130 can target 18300/330.
However, Friday's bearish engulfing candle on the daily chart, just below the all time high is a warning for bulls. Friday's peak was not close enough to Monday's all time high to call it a double top but the price action suggests a period of consolidation, if not a short term (minor) correction to the downside.
We broke good support at 17700/650 but must hold below below 17500 if we are to see further losses targeting 17460/420, (which held the downside yesterday) perhaps as far as a buying opportunity at 17230/180. Longs here need stops below 17100.
Emini Dow Jones March futures beat resistance at 38600/650 to hit my next target of 38880/900 with a high for the day exactly here.
We can only scalp at this stage in the 2 week sideways consolidation as there are no swing opportunities until we see a breakout of the range. With minor support at 38600/550 (which did hold the downside yesterday) & 38350/300, longs need 50 point stops on these scalping levels & look for a 200 to 300 tick profit.
Any recovery meets the all time high at 38980-39012. Above here we look for 39160/220. A break above 39270 targets 39450/500.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended content
Editors’ Picks
USD/JPY remains below 158.00 after Japanese data
Soft US Dollar demand helps the Japanese Yen to trim part of its recent losses, with USD/JPY changing hands around 157.70. Higher than anticipated Tokyo inflation passed unnoticed.
AUD/USD weakens to near 0.6200 amid thin trading
The AUD/USD pair remains on the defensive around 0.6215 during the early Asian session on Friday. The incoming Donald Trump administration is expected to boost growth and lift inflation, supporting the US Dollar (USD). The markets are likely to be quiet ahead of next week’s New Year holiday.
Gold hovers around $2,630 in thin trading
The US Dollar returns from the Christmas holidays with a soft tone, although market action seems contained. The positive tone of Asian shares weighs on the Greenback.
Floki DAO floats liquidity provisioning for a Floki ETP in Europe
Floki DAO — the organization that manages the memecoin Floki — has proposed allocating a portion of its treasury to an asset manager in a bid to launch an exchange-traded product (ETP) in Europe, allowing institutional investors to gain exposure to the memecoin.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.