What's Next for Indexes as Microsoft, Alphabet, Amazon and Meta Report Earnings?
Jason Sen | Oct 23, 2023 02:28AM ET
Emini S&P December futures collapsed to my targets of 4375/4365 and 4340/35. Then the break below 4335 hit my targets of 4300/4290 and 4270/65.
Support at 4260/50 held but with no bounce or indication that a low has been reached and a close right at the low of the day and the week, it looks like we will continue lower to test extremely important support at 4220/4200. This will make or break the market going into year-end.
I would try along. 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.
Nasdaq December futures shorts at 15300/350 worked perfectly, at last, we hit my targets of 15050/15000 and 14830/800 and as stated on Friday, eventually we could fall as far as the lower trend line support of the 3-month triangle pattern at 14600.
We got pretty close on Friday. A break below 14500 will be an important sell signal suggesting a breakout of the 4-month triangle pattern. However, a bounce from 14600/550 however can target 14650 and 14750, and even 14900 is possible.
Emini Dow Jones December shorts at resistance at 33930/970 worked perfectly with a high for the day exactly here before we collapsed to hit targets of 33700/650 & 33600.
On Friday we wrote: Further losses are likely & target 33350/300 for profit taking before the weekend.
All targets hit as we approach the October low at 33070/020. Obviously, a break below 32990 suggests further losses towards 32750/700. A bounce meets resistance at 33500/560 & shorts need stops above 33630.
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