S&P 500 Futures in Short-Term Consolidation Pattern
2023.09.18 06:38
December futures holding both support at 4500/4490 and 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 and 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 at 4500/90. If we continue lower this week however look for 4465/60 and 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.
Emini S&P 500 Futures 4-Hour Chart
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 and wait for a breakout.
In fact, these levels almost exactly matched Friday’s high and low for the day. Trade the levels while we wait for a breakout.
Nasdaq Futures 4-Hour Chart
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 and 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 in 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.
