Stocks Bounce Off Support: Could the Move Higher Continue?
2023.10.24 05:08
December futures collapsed 150 points as expected to test an extremely important support at 4220/4200. This will make or break the market going into year-end and we saw a low for the day exactly here yesterday.
I would try a long here again today. It is worth the risk despite the downside momentum.
However, we want to reverse into a short on a break lower which can target 4130/20 (just to start with).
Longs at 4220/4200 could see a good profit if the level holds, initially targeting 4285/95 (and we held just 5 points below here yesterday). Above 4300 looks for 4315/20, but 4335/45 is not out of the question.
December futures shorts at 15300/350 worked perfectly at last we hit my targets of 15050/15000 and 14830/800 and then the lower trend line support of the 3-month triangle pattern at 14600 as predicted yesterday.
We are seeing a bounce from 14600/550 hitting my targets of 14650 and 14750. Eventually, even 14900 is possible. If we continue higher I expect strong resistance at 15100/200 and shorts need stops above 15300.
Emini December crashed from resistance at 33930/970 as predicted to test my target of the October low at 33070/020.
A low for the day exactly here & as stated yesterday the bounce meets resistance at 33500/560 and shorts need stops above 33630.
The low yesterday means we have a potential double bottom pattern which could eventually trigger gains as far as 34750, for anyone willing to hold a swing trade.
Obviously, a break below 32990 suggests further losses towards 32750/700.
