US Stock Market Shows Resilience Amid Mixed Signals from E-Mini Indexes

E-Mini S&P December made a contract high at 5830 but reversed to 5778. The low and high for the last session were 5778 – 5830. (To compare the spread to the contract you trade).

E-Mini Nasdaq December is in a very slow 2-month bull trend, recovering from the late August collapse. Last session high and low for the last session were: 20188 – 20538.

E-Mini Dow Jones December collapsed leaving a bearish engulfing candle on Wednesday but recovered most of the losses yesterday, so the candle was probably a false signal. Fortunately, I ignored the signal and had us buying at first support at 42270/230. The long worked perfectly as we shot higher to 42594. Last session high and low for the last session were: 42231 – 42594.

E-Mini S&P September Futures

• beat 5805 for a buy signal and hit the next target of 5830/35 but then unexpectedly reversed.
• We have moved very little this week and are struggling to push higher in severely overbought conditions but of course, shorts are a bad idea without a sell signal in such a strong longer-term bull trend.
• So I have no strong signals but if we continue higher look for 5875/85, perhaps as far as 5900/05.
• My best suggestion on how to trade this market is to buy at support but be quick to take a profit in the low volatility conditions.
• First support at 5795/90 and longs need stops below 5785.
• Next support at 755/5770 should be stronger but longs need stops below 5765.
• Look for 10 to 15 points profit on these trades.

Strong support at 5745/35 & longs need stops below 5730.

Targets: 5755 & 5765

Nasdaq September Futures

• The break above the August high of 20217/251 hit my targets of 20330/340 and 20400/430, but not quite as far as 20600 just yet, with a high for the day yesterday at 20538.
• We made a low for the day at support at 20250/150 but longs need stops below 20050.

Very strong support at 19900/800 & longs need stops below 19700.

E-Mini Dow Jones September Futures

• Longs at first support at 42270/230 worked perfectly and longs need stops below 42050 if the level is retested today.
• We may start a consolidation phase now, where we trade in a sideways pattern to ease overbought conditions.
• A break lower risks a slide to 41900/800.
• We could have resistance again at 42650/680.
• However, a break above 42700 can target 42800/820, perhaps as far as 43000/43100.