Emini S&P March futures collapsed from 4830 leaving a serious bearish engulfing candle which took out 4 days of steady gains in just 3 hours. We saw one like this in Gold last week & it did trigger further losses until the Fed announced a potential U turn on rates in 2024.
On the cash index we just rejected the all time high in severely overbought conditions so I would take this as a sell signal & a potentially huge double top pattern. I would suggest selling a bounce to 4790/4800 with stop above 4830.
First downside target could be as low as 4680/60. A break below 4730 today should trigger a move towards this target & support area. I think it is worth trying a long at 4680/60 with stop below 4650.
Nasdaq March futures hit the next targets of 16880/900 & 17000 in the bull trend but reversed from just below 17100 leaving a serious bearish engulfing candle. Again this changes the short term outlook increasing risks to the downside. I would try a short at 16900/950 & stop above yesterday's high at 17073.
A break below 16680 today could be taken as a sell signal targeting support at 16470/420. Longs need stops below 16350.
Emini Dow Jones March unexpectedly collapsed from 38012 leaving another serious bearish engulfing candle which also took out 4 days of steady gains. I would try a short at 37700/800 & stop above yesterday's high at 38012.
A break below 37200 today is a sell signal & can target support at 36800/700. Longs need stops below 36700.
