Emini S&P we wrote: Holding very strong resistance at 2875/85 indicates a potential head & shoulders being formed.
We topped exactly here. We watch the neckline at 2795/90 now, with a break below providing the confirmation sell signal. (A weekly close below tomorrow would be a nice weekly confirmation).
Nasdaq holding gains but could still be forming a 1 month head & shoulders top. We held support at 8850/40.
Today’s Analysis
Emini S&P first resistance at 2840/50. Holding very strong resistance at 2875/85 indicates a potential head & shoulders being formed. Try shorts with stops above 2895. A break higher is a buy signal targeting 2905, 2909/10 & 2920/23.
Holding 2840/50 targets 2830/25 & minor support at 2817/15 & head & shoulders neckline at 2795/90. A break below 2780, therefore, confirms the head & shoulders formation for an important medium-term sell signal.
Nasdaq appears to have stalled but no clear sell signal yet. Minor resistance at 9010/20 then a retest of this week’s high at 9050/56. A break higher kills chances of a head & shoulders top forming. We look for 9110/20 before the 9140/45 recovery high. Watch for a potential double top sell signal here. A break higher is a buy signal.
Best support at 8940/30. Longs need stops below 8910. A break lower targets 8860/50. Below 8830 is a sell signal targeting 8810/00 & 8760/50, perhaps as far as 8710/00.
Trends
Weekly outlook is positive
Daily outlook is positive
Short Term outlook is neutral
