S&P 500 Futures Emini market analysis
Emini daily chart
- Emini tested up to the December 6th high yesterday and after Wednesday's rally.
- While the rally was good for the bears, it is a disappointing bar due to the tail above it. This increases the odds of the market going sideways to down over the next several weeks.
- The odds favored sellers back at the December 6th high due to disappointed bulls selling out of longs and bears looking to establish shorts.
- The bears, at a minimum, need to add to the selling pressure and make the market go sideways.
- The bears hope this is the start of a strong reversal below the moving average.
- Because the channel up has been tight, the odds favor sideways trading and not a strong reversal today or tomorrow.
- Overall, the bull channel forms a wedge top and will likely be corrected soon. This increases the risk of a test to the November 19th low over the next several weeks. It is important to realize that the market can go sideways for a long time before the bears get the test down.
Emini 5-minute chart and what to expect today
- The Emini gapped down on the open and is testing yesterday’s low.
- Because of yesterday’s rally’s strength, the odds favor a trading range today, not a strong bear trend day.
- This means traders will probably look to buy and attempt to go below yesterday’s low.
- The bulls see the selloff that began at yesterday’s high as a pullback following the large bull breakout. Next (LON:NXT), the bulls want a rally and test of yesterday’s high.
Yesterday’s Emini setups
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