E-Mini S&P 500: A Break Higher Targets 4685/90

 | Nov 30, 2021 04:19AM ET

  • E-mini S&P December rocketed back to my selling opportunity at 4660/65. Shorts here worked perfectly with a high for the day just 4 points above and an overnight collapse to 4582 as I write.

    Outlook remains negative after last week's bearish engulfing candle.

  • NASDAQ December unexpectedly shot higher to strong resistance at 16400/450. Shorts here worked perfectly with a high for the day here as we sell off towards 16200.

  • E-mini Dow Jones December shot higher towards strong resistance at 35300/350, but we only reach 35234. Outlook remains negative.

    • h2 Today's Analysis/h2

    E-mini S&P holding below 4600/4395 in what looks like a developing bear trend keeps the pressure on to test very strong support at 4560/50 and also the measured target for the completed head & shoulders sell signal. Therefore, it's worth trying longs with stops below 4540. A break lower, however, is a sell signal targeting 4505/00.

    First resistance at 4625/30, but above 4635 can retest our selling opportunity at 4660/65. Try shorts with stops above 4670. A break higher targets 4685/90.

    NASDAQ December minor support is at 16200/150, but the outlook is more negative after the weekly bearish engulfing candle. A retest of last week's low at 16000/15988 is likely. A break below here is an important sell signal, expected to target support at 15880/830. This is likely to hold the first test although longs could be risky. A break lower sees 15830/880 act as resistance to target 15700 and 15600/550.

    Strong resistance at 16400/450. Stop above 16470. A break higher is a buy signal targeting 16550/580.

    E-mini Dow Jones December broke support at 34800/750 this morning so holding below here targets 34550 and the measured target for the head & shoulders at 34450/350 (hit this morning exactly as I write) and as far as the 200 day moving average at 34250/200. Longs look risky. Eventually we could reach strong support at 33700/650. Longs need stops below 33500.

    Gains are likely to be limited with first resistance at 34750/800 but above 34850 opens the door to 35000/100, perhaps as far as strong resistance at 35300/350. Try shorts with stops above 35450.