US Indexes Look to Build on Yesterday’s Small Recovery – Key Levels to Watch

2024.10.17 04:51

1. Emini S&P December made it as far as 5918 but has hit profit taking in overbought conditions as we wipe out Monday’s strong gains.

• There is a good chance we will consolidate and trade sideways for a short period to ease overbought conditions.
• Definitely, no sell signal though.
• The low & high for the last session were 5853 – 5892
  (To compare the spread to the contract you trade)

2. Emini Nasdaq December should find support at 20250/200 and longs need stops below 20150.

• Last session high and low for the last session were: 20206 – 20398.

3. Emini Dow Jones December collapsed from a new all-time high at 43445 leaving a bearish engulfing candle on the daily chart on Tuesday but we recovered yesterday.

• Last session high & low for the last session were: 42937 – 43369.

Emini S&P December Futures

• managed to bounce from support at 5850/40 (I wasn’t sure it would).
• We reached 5892 and obviously, bulls want to retest this week’s all-time high at 5918.
  On a break higher look for 5935/40.
• A break below 5840 targets a buying opportunity at 5810/5790. Longs need stops below 5780.
  Targets: 5830, 5850, perhaps as far as 5870.
• I cannot think about short positions in the strong longer-term bull trend on any recovery, despite overbought conditions. But it is possible that we trade in a sideways range for a while to consolidate gains, so I will be watching for a pattern to form.

Nasdaq December Futures

• Key support at 20250/200 today from short-term moving averages and a 5-week ascending trend line.
  Longs need stops below 20150.
• A break lower risks a slide to a buying opportunity at 19950/850 and longs need stops below 19700.

Emini Dow Jones December Futures

• formed a Bearish engulfing candle on the daily chart on Tuesday but we bounced from support at 43000/42900 to 43369.
• Longs on a retest of support at 43000/42900 today need stops below 42800.
• A break lower should target a better buying opportunity at 42660/620.
  A good chance of a low for the day but longs need stops below 42500.

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