Stock markets collapse as trade war escalates significantly
The E-mini S&P 500 topped exactly at first resistance at 2903/05 and crashed below 2869/66 to fall almost another 100 points to 2775.
After crashing 255 points from key trendline resistance at 3030/40 as the trade war escalates, we just bounced to the opening gap at 2822. Holding below 2820/25 targets first support at 2800/2795 before a re-test of 2775. A break lower is certainly possible for strong support at 2755/45. The brave can try long positions with stops below 2730. A break lower is an important sell signal targeting 2700/2695 and 2680/70.
Bulls need a break above 2835 for a recovery to 2845/50 and resistance at 2865/70. Gains are likely to be limited but above here look for strong resistance at 2895/2905.
The Nasdaq 100 crashed below 7760 for an important sell signal and through good support at 7670/65 for another sell signal, targeting more important eight-month trendline support at 7430/20.
Even this did not hold with markets in freefall, and the Nasdaq crashed another 480 points yesterday. We have first resistance at 7340/50 but a move above 7370 targets strong resistance at 7410/20. Short positions need stops above 7440. A break higher targets 7475, then a selling opportunity at 7525/35, with stops above 7550.
Failure to beat first resistance at 7340/50 targets minor support at 7310/05 and 7275 before the low at 7225. From here down to 7200 is the most important support of the day. Long positions need stops below 7170. A break lower is an important sell signal and we could quickly drop another 100 points or more.
The E-mini Dow Jones break of 26290/260 was a sell signal targeting a buying opportunity at 26000/25980. We only stabilised here for a few hours before another sell signal targeting 25720/700, but we eventually crashed as far as 25032.
Look for minor resistance at 25370/390, then strong resistance at 25550/580. Short positions need stops above 25600 for the next target of 25740/750 and strong resistance at 25880/920.
There is very minor support at 25285/255 before the low at 25050/030. The best support is at 25000/24900 so a break below 24800 is a sell signal, targeting important support at 25630/600.
Technical Analyst & Trader
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