Stock markets take a tumble – The next support and buy level?

Emini S&P futures

Emini S&P March futures broke below minor support again at 6920/6910 to hit my next downside target & good support 6860/6850.

We made a low for the day just 8 points below here but are yet to see any recovery.

This is an important level again today & longs need stops below 6830.

A break lower & especially a weekly close below 6830 is a short term sell signal targeting 6815, 6790/85 & even a retest of last week’s low at 6752 is possible.

We then meet strong support at 670/6730 for a buying opportunity with a stop below 6705.

Longs at support 6860/6850 can target 6880/6890 & above 6900 look for 6920/6925 for profit taking before the weekend.

Nasdaq futures

Emini Nasdaq March futures break above 25390 was a clear buy signal initially targeting 25550/25650.

We got close but reversed from 25465 but broke support at 24990/24900 this time with stops below 24800 triggered

If you sold on the break lower, we can target 24690/630 and as I write over night we are only 25 ticks away, so the target is almost achieved.

Further losses are possible for a test of 18 month trend line support at 24500/25400.

Longs need stops below 25300 but below here meets excellent longer term support at 24200/24000.

There is a good chance of a strong bounce from here in the days ahead, but longs need stops below 23850.

After the break lower yesterday, gains are likely to be limited for now, with resistance at 25100/25200 but shorts need stops above 25250.