Market Overview: S&P 500 Emini Futures
The S&P 500 Emini futures traded slightly higher and traders are wondering if this is a pullback or second leg up to retest the December high. The bulls will need to create follow-through buying next week to increase the odds of retesting the December high. The bears want the Emini to stall around the 20-week exponential moving average and another sideways to down leg.
S&P500 Emini futures
The Weekly S&P 500 Emini chart
- This week’s Emini candlestick was a bull bar closing near its high with a long tail below.
- Last week, we said that odds slightly favor the Emini to trade at least a little higher towards the 20-week exponential moving average.
- The bears see the recent move up forming a wedge bear flag (Oct 5, Nov 15, and Dec 1), a double top bear flag (Sept 12 and Dec 1) and a lower high.
- They got a reversal lower following the micro double top (Dec 1 and Dec 13).
- The bears got a big outside bear bar, but weak follow-through selling. The last 3 candlesticks had prominent tails below.
- They hope to get at least a small second leg sideways to down after a pullback (bounce).
- Bears see the selloff from January 2022 as a broad bear channel. The major bear trend line remains as resistance above.
- Until the bulls can break far above the December high, the broad bear channel remains in play.
- The bulls want a reversal from a higher low major trend reversal and a double bottom bull flag (Nov 3 and Dec 22).
- They want the pullback to be more sideways around the 20-week exponential moving average and a second leg sideways to up retesting the December high.
- They will need to create a strong follow-through bull bar next week to increase the odds of a retest of the December high.
- The bulls need to break far above the major bear trend line to signal the end of the correction.
- Since this week was a bull bar closing near the high, it is a good buy signal bar for next week.
- Odds slightly favor the Emini to trade at least a little higher towards the 20-week exponential moving average.
- Traders will see if the bulls can create follow-through buying or if the Emini trades higher but stalls around the 20-week exponential moving average.
The Daily S&P 500 Emini chart
- The Emini traded mostly sideways and pushed higher on Friday closing as a big bull bar above the 20-day exponential moving average.
- Previously, we said that the Emini may trade at least a little lower. While it has traded slightly lower, the follow-through selling was weak and mostly sideways.
- The bears got a reversal down from a wedge bear flag (Nov 1, Nov 15, and Dec 1), a double top bear flag (Sept 12 and Dec 1), and a double top (Dec 1 and Dec 13), around the major bear trend line.
- The bears want at least a small second leg sideways to down leg after a pullback from a double top bear flag (Dec 21 and Jan 6).
- They want the Emini to stall around the 20-day exponential moving average or the major bear trend line. They want a retest of the October low followed by a strong breakout and a measured move down.
- They will need to create strong consecutive bear bars closing near their lows (like August) to increase the odds of a reversal down.
- Bears see the selloff from January 2022 as a broad bear channel.
- The bulls hope that the current pullback will form a higher low and reverse up from a higher low major trend reversal.
- They also want a larger second leg sideways to up from a double bottom bull flag (Nov 3 and Dec 22) to retest December high.
- The bulls will need to create follow-through buying early next week to increase the odds of a retest of the December high.
- Until the bulls can break far above the December high, the broad bear channel remains in play.
- The move up from October had a lot of overlapping price action. The bulls are not yet as strong as they would like to be.
- The bulls need to create strong consecutive bull bars closing near their highs and trading far above the major bear trend line and December high, to convince traders that the selloff from January has ended.
- Since Friday was a big bull bar closing near its high, it is a good buy signal bar for Monday.
- Odds slightly favor the Emini to trade at least a little higher.
- Traders will see if the bulls get strong follow-through buying or if the Emini continue to trade sideways around the 20-day exponential moving average.
Trading room
Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com trading room. We offer a 2 day free trial.
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