S&P E-Minis Trend Needle Points South
Apr-15 14:09By: Taso Anastasiou
S&P
- A bearish medium-term threat in the S&P E-Minis contract remains present.
- A shift in sentiment unfolded between November and February - a double top reversal pattern clearly reflects this change.
- The recovery between Mar 13 - 25 is known as a ‘return move’ - a price movement that usually occurs following the break of a key price point or the confirmation of a reversal signal or pattern. The fact that the move higher stalled ahead of the mid-point, reinforces the significance of the reversal pattern and strengthens bearish conditions.
- Moving average studies are in a bear-mode position highlighting a dominant downtrend and bearish market sentiment.
- A key resistance exists between the 20- and 50-day EMAs. While this resistance zone remains intact, the recovery since the Apr 7 low appears corrective.
- These technical developments suggest the primary trend remains bearish and that the contract is likely to retest its recent lows.
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