Nasdaq Bear Trend May Resume; Dow Recovery Out of Steam

11/17/2022

1 minute read

2022.11.17 05:35

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Jason Sen

December futures hit key Fibonacci resistance at 4000/4020 with a high for the day yesterday. A break blow 3960 today is a sell signal.

I think we will see the bear trend resume from 4000/4020.

December shorts at key resistance today at 11850/950 are starting to work.

A good chance the market has ended the counter trend correction and the bear trend resumes from here.

E-mini have recovered 61.8% of the losses for 2022. Incredible! The index is only down 3000 ticks or 8% from the all time high.

3 neutral candles indicate the recovery has run out of steam.

Remember when support is broken it usually acts as resistance and vice-versa.

Today’s Analysis

E-mini S&P December holding Fibonacci resistance at 4000/4020 yesterday starts to put bears in control. Minor support at 3970/60 has also held (as we trade sideways as predicted) but below a break below 3960 is likely today for a sell signal targeting strong support at 3925/15. A low for the day expected if test but longs need stops below 3900. A break below here is an important sell signal.

Fibonacci resistance at 4000/4020 but we also have strong resistance at 4070/80 and shorts need stops above 4090.

Nasdaq December could be nearing the end of the recovery now as we reverse from key resistance at 11850/950. Again shorts need stops above 12100. Bulls need a sustained break above 12100 for a buy signal.

Our shorts at key resistance at 11850/950 held first support at 11750/700 perfectly yesterday but a break below 11700 is expected soon for a sell signal targeting 11580/540, perhaps as far as 11400/350.

E-mini Dow Jones tests resistance at 33700/800 and our shorts need stops above 34050. A break higher targets 32230/250.

Our shorts at 33700/800 target 33400/350 but we should eventually continue lower for 33200 and support at 32800/700.

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