Are stock markets about to crash?

Emini S&P futures

Emini S&P June futures – yesterday I warned: Just be aware that we are severely overbought.

”I am not suggesting we are about to see a significant move to the downside – there is no evidence of that and markets can remain overbought for a long time in a strong bull trend.”

It was not a surprise to see prices lower yesterday but unfortunately, my support at 7390/7380 was just a little too high & we dipped as far as 7363.

Frustrating as I wanted to capitalise on weakness to jump in to longs.

However, I will stick with support at 7390/7380 today…there’s a good chance that today’s low will be slightly higher than yesterday.

Longs need stops below 7365.

However a break lower risks a slide to support again at 7330/7320 & longs need stops below 7300.

For now, a break above 7460 is always possible in the strong bull trend to target 7490/95.

Nasdaq futures

Emini Nasdaq June futures edged to a new all time high at 28480 as we look for 29550/590 eventually.

Again I warned that we may need to consolidate to ease overbought conditions so it was no surprise to see us test support at 28950/28850.

Hopefully the bounce from 28750 kept us long for the expected bounce which reached 29310 as I write.

Further gains obviously can retest the all time high at 29480.

On a break higher we target 29720/780 then 29950/30000.
We could find support again at 28950/28850 & longs need stops below 28750.

Below here meets better support at 28500/28400 & longs need stops below 28300.