S&P 500 E-Mini Bears Want Measured Move Down

ESU3
-0.04%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

Emini daily chart

• The S&P 500 Futures Bears formed a downside breakout over the past two days. They hope this is a bear breakout below a bull flag that will lead to a measured move down of the bull flag.
• The measured move from the July 27th high to the Aug 11th low projects down to 4,278.
• While the market probably will not race down to the measured move projection, traders must respect the bears.
• The bulls are hopeful they will be able to disappoint the bears and create a bad follow-through bar today.
• The bear breakout over the past two days is strong enough that the first reversal up will probably fail, and the bears will get at least a small second leg down.
• Overall, traders should expect a small 2nd leg down after the recent two-bar bear breakout. The Bulls will likely need at least a micro double bottom before getting a possible reversal up.

Emini 5-minute chart and what to expect today

• Emini is up 11 points in the overnight Globex session.
• The Globex market has been in a tight bull channel for most of the overnight session.
• The bulls are hopeful that today will be a bull bar creating bad follow-through for the bears.
• Traders should pay attention to the open of the day as it will likely be a magnet. If the market is below the open but not far below, traders will look to buy for a test above the open of the day.
• Traders should be prepared for the bears to get another possibly bear trend day on the daily chart. If the open starts to form bear trending behavior, such as strong consecutive bear trend bars, traders cannot be in denial of the price action and must find a way to get short.
• Overall, traders should expect a trading range day until proven otherwise.

Yesterday’s Emini setups

SP500 Emini 5-Minute-Chart

Source