This is telling us to be on alert, and that there's a decent shot for a reversal of some sort. If the market is *not* in a little meltdown mode (and those meltdowns don't happen very often), then we really only need some kind of spark to ignite a decent countertrend bounce.
*IF* this happens on Wednesday and we get a corrective rally, then we would expect a zig-zag type of rally that runs out of steam near a resistance zone. This would set the stage for a good position trade on the short side, if everything plays out according to plan. However, as usual, we will take it one day at a time.
We are going to keep an eye on the breadth on Wednesday. If there is a reversal higher, the breadth needs to be strong (like +500 early) and expand throughout the day. Otherwise any rally we get would be suspect.
There is initial resistance at 892.00-893.50 on the SP
futures and 1012-1016 on the Nasdaq futures, especially on early strength. If these are reached, but the market is unable to clear both zones, then look for another push to test/ break the Tuesday lows. However, if both of those zones are cleared we should see a move to the 898.00-899.50 area on the SP futures. Above there are the key zones early in the day at 892.00-893.50 and 1021-1024. These zones might not line up, so watch each index in turn if they get there. If those don't stop a rally attempt, then look for more key short term resistance at the 904.00-905.50 and 1030-1033 areas. Finally, if the market really goes into rally mode, then the last resistance would be the 912.80-915.50 zone on the SP futures, and at 1042-1046 zone on the Nasdaq futures. If reached it might be just the spot to initiate a position short.
The initial support is just under the Tuesday lows at 885.50-884.80 on the SP futures and 1007-1005 on the Nasdaq futures, and then at 881.00-878.80 (where there's still a small gap) and 1001-999. *IF* there is going to be a reversal we suspect it will come from one of these zones. But if these are both broken and the market doesn't quickly make a 180 degree turn, then the market is apt to grind on down towards the 874.50-873.00 and/or 991-989 areas. These are as far as the market will sell off unless it's on a bee- line to the December 31st lows down at 868.20 and 979. Finally, if these break it will give us bigger picture targets at the 852.00-850.00 area on the SP500, the 7955- 7945 area on the Dow, and the 935-925 area on the Nasdaq 100.
PS:Genial, die kleine Rally heute haben die perfekt vorhergesagt.
ab NSDQ 999-1000 rebound (Future, da waren wir heute)
SP war bei 881-882, dann rebound
Stox Dude
