US stock futures are currently trading down about 5% on news of a 30-day ban on all travel to the US from Europe (ex-UK). /NQ (Nasdaq 100) is trading down about 5% with slightly smaller losses on /ES (S&P 500) although the downside, at least until the regular trading session opens tomorrow, will be limited from here as /ES will hit the 5% down lock-limit soon as it did on Sunday night should it continue much lower.
As the fundament and technical outlook for the market continues to deteriorate, I figured that I’d share some of the next potential downside targets on the stock futures with additional targets on SPY & QQQ to follow soon. /NQ has price support around 7357 that roughly aligns with the 61.8% Fibonacci retracement level from the rally off the December 2018 major reaction low up to the February 2020 major reaction (and all-time) high. This would be a potential reversal point, should /NQ get there soon although we’ll have to assess the charts if & when the Nasdaq 100 approaches that level in order to determine if a reversal appears likely.
NQ daily March 11th
Unlike /NQ, there really isn’t much support on /ES before the Dec ’18 lows other than minor support around 2535 although I’ll continue to monitor the charts closely & let you know if I see anything that stands out. As of now, both the QQQ short trade as well as the LQD short trade have the unique status of being “open-ended”, meaning that the final price targets are still to be determined as I’ve allowed those trades to morph into what I refer to as potential runner trades.
ES daily March 11th
With the downside in the stock futures limited, at least until tomorrow, I will be signing off for the night soon unless I come across anything compelling that stands out. Stay safe & keep your position sizes down to the level at which you can sleep at night, even if that level is zero.
-rp