Investing.com - Financial Markets Worldwide
⚠ Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

S&P 500 E-mini Becoming Neutral on Daily Chart

ByAl Brooks
Published 12/17/2024, 10:31 AM

S&P Emini market analysis

Emini daily chart 

  • The Emini is in a tight trading range on the daily chart and, therefore, a neutral market. Traders should assume that the probability is close to 50% of a directional breakout up or down.
  • The probability slightly favors the bulls because the market is in a bull channel, holding above the moving average.
  • The longer the market goes sideways and builds in selling pressure, the greater the risk of a downside breakout below the moving average and a test of the November 15th most recent major higher low.
  • While the bears have done a good job of making the market go sideways, they need to do more. Ideally, the bears need a series of bear bars closing below the moving average for traders to conclude the market is Always In Short.
     

Emini 5-minute chart and what to expect today
 

  • The Emini gapped down on the open and formed a bull reversal bar on bar 3.
  • While the gap down is good for the bears, the context is not ideal. The Gap down is near the bottom 1/3rd of the trading range on the daily chart, and the 15-minute Globex chart finds support around the day open.
  • The bulls hope that the bull trend from the open will last all day. They need more follow-through buying to reassure traders that the rally will last several hours.
  • Bar 5 is a strong enough rally that the odds favor a 2nd leg up and buyers below. 
  • At the moment, the market is buy the close for a second leg up.
  • Because of the buying pressure on the open, today will likely be a bull trend or a trading range day, not a bear trend day. 
  • The bull should not have allowed bar 6 to form. This is a disappointment, following the overlap on bars 5-6. This increases the odds of a trading range open.

    Yesterday’s Emini setups

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.