Chart_Whisperer
Short

Bullish fake-out on the e-mini

CME_MINI:ES1!   S&P 500 E-mini Futures
This is a followup to an earlier post on the e-mini and AMZN . You can see here that the e-mini put in a series of higher high's last week and was bid up off the 50% bullish level shown here after the sell-off on Friday. This puts on the appearance that the e-mini is setting up to retrace higher over the near-term. This was my earlier impression on AMZN . However, often with strong trends you will see fake-outs similar to this. Looking more closely at the chart, specifically the sequence of lows from 04/05, I'm thinking that the e-mini is in fact setting up for a run lower down to the 2531 level, and possibly the 2443 level. Considering that many large bellwether stocks are hovering just above multi-year lows where large stop orders are placed, i.e. XOM . It seems more likely that the market will run these stops and push the e-mini lower, rather than retrace higher.
Comment: We can see that the e-mini has reached the retracement levels that I identified earlier. Based on the price behavior so far I would not recommend a short position at this point as its now looking like they may go ahead with the bullish extension.
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out