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Is S&P 500 E-Mini’s Momentum Fading? Potential Correction Looming?

2 months ago
2 months ago


Market Analysis: S&P 500 Emini Futures

Weekly Chart Overview

The weekly chart for the S&P 500 Emini Futures indicates a potential loss of momentum, with progressively smaller bull bars in the last three weeks. Here’s what you need to know:

  • If the market trades lower, the bulls are looking for the 20-week EMA or the bull trend line to provide support, potentially forming a double-bottom bull flag with the September 6 low.

  • On the other hand, the bears are hoping for the market to stall around current levels and start forming bear bars.

Weekly S&P 500 Emini Chart Details

Let’s dive deeper into the details of the weekly S&P 500 Emini chart:

  • This week’s Emini candlestick formed a bull doji, closing below the middle of its range.

  • The market made a new all-time high this week but closed below last week’s high.

  • The bulls are optimistic that the market is in a broad bull channel phase and are eager for a resumption of the upward trend.

  • Conversely, the bears view the current rally as a retest of the prior all-time high and are looking for a reversal from a double top.

  • The candlesticks are showing a trend of becoming smaller over the last three weeks, indicating a potential loss of momentum and a higher risk of a minor pullback.

Daily S&P 500 Emini Chart Breakdown

Here’s a breakdown of the daily S&P 500 Emini chart for a more granular view:

  • The market traded sideways to up for the week, with Thursday experiencing a gap higher but closing as a bear bar.

  • The bulls are hoping for a strong breakout above the all-time high with follow-through buying, while the bears are eyeing a reversal from a higher high major trend reversal.

  • Traders need to watch for consecutive bear bars closing near their lows, indicating a potential shift in control to the bears.

  • If the market continues to stall, we may see a minor pullback testing the 20-day EMA in the coming weeks.

Conclusion

Overall, the S&P 500 Emini Futures market is at a crucial juncture, with both bulls and bears vying for control. Traders should closely monitor key levels and price action to gauge the market’s direction going forward.

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