S&P 500: A Break Below 4100 Is A Sell Signal Initially Targeting 4065/55

E-mini S&P March crashed to 4100. The NASDAQ and E-mini Dow Jones held their support levels perfectly so I assume this is why E-mini S&P bounced as well but I did not see a support at 4100.

NASDAQ MARCH shorts at 14100/150 worked perfectly on the collapsed 14100/150 to my targets of 13850/800, 13600/580 and to within 25 ticks of VERY IMPORTANT SUPPORT AT 13000/12950 .

I hoped you managed to buy in to a long in time for the near 1000 tick bounce. Nice call eh?

E-mini Dow Jones March we wrote: We do have very important longer term support at 32400/300 so holding here today triggers a good recovery to strong resistance at 32900/33000.

Longs at 32400/300 worked perfectly with a bounce straight to my target of 33000.

Today's Analysis

E-mini S&P closed above key resistance at 4195/4205 to signal a false break and as I wrote, we could get quite a short squeeze. We certainly did that with a bounce to my first target of 4260/70. In fact a high for the day exactly here. However there is a good chance that is is only a pause and eventually we continue higher towards 4300/10, perhaps as far as strong resistance at 4360/80.

Important support at 4195/4185. A weekly close below here could trigger another 15% correction to the downside. Obviously a break below 4100 is another sell signal initially targeting 4065/55.

NASDAQ saw a low for the day almost exactly at very important longer term support at 13000/12900. As I wrote: Definitely worth trying a long as this could be a low for the correction at this stage. Did you buy in time to for the bounce to my targets of 13500/600 and13800/850?? We have held the 23.6% Fibonacci level of 13850/950 but I think this is just a pause. Eventually (hopefully today) a break above 14000 signals further gains to minor resistance at 14070/080 then 14350/360. Expect very strong resistance at 14400/450. A high for the day is expected - shorts need stops above 14500.

Failure to beat 13850/950 risks a slide to to 13600/550. Further losses risks a retest of important longer term support at 13000/12900. Longs need stops below 12800. A break lower however could send prices down another 100 points eventually.

E-mini Dow Jones longs at strong support at 32400/300 worked perfectly with longs winning huge sums on the bounce to resistance at 32900/33000. We wrote: There are the only two levels that matter today. How correct was that!!?? Minor resistance at 33200/300 but I think this is just a pause . Eventually (hopefully today) a break above 33400 signals further gains to 33600 before strong resistance at 33900/34000. Shorts need stops above 34150.

Again strong support at 32400/30. A break below 32000 is then a very important longer term sell signal and could see 750 tick losses almost immediately.