S&P 500: Buy signal initially targeting 4295/99

Emini SP 500, Nasdaq, Emini Dow Jones

Emini S&P September longs at best support at 4215/05 worked as we bounce back to4264. Bear in mind that a weekly close above 4268 leaves a bullish engulfing candle on the weekly chart which would start next week with a buy signal.

Nasdaq September we wrote: the recovery from just above support at 13940/900beats the all-time high at 14218 reaching 14300. Further gains are likely towards the next target of 14450/500.

We held just 28 ticks from this week’s target.

Emini Dow Jones September beat all the resistance levels in a 950 tick recovery to form a bullish engulfing candle on the daily chart. The break above key resistance at34000/34050 is another buy signal as we hit the next target of 34180/230.

Daily analysis

Emini S&P bounce from best support at 4215/05 worked on the bounce to the all-time high for the September contract at 4264/67. A break above here is an obvious buy signal initially targeting 4295/99.

Minor support at 4230/25. Best support again at 4215/05. Longs need stops below4200. A break lower targets 4180/75. A break below 4165 risks a retest of this week & strong support at 4135/25.

Nasdaq almost at the next target of 14450/500 as predicted. This is the main challenge for bulls today but obviously, shorts are very high risk in the bull trend despite severely overbought conditions. Bulls need a weekly close above 14550 for abuy signal at the start of next week.

There is a bearish engulfing candle on the 60 min chart which may trigger aconsolidation but I would not take this as a sell signal. Therefore the downside should be limited. First support at 14300/270, better support at 14200/180. Longs need stops below 14140.

Emini Dow Jones September through key resistance at 34000/34050 to the next target of 34180/230 as we look for 34320/340 than 34500.

I assume the downside will be limited after this week’s bullish engulfing candle. Minor support at 34050/34000. Strong support at 33850/800.