S&P 500 Futures Emini market analysis

Emini daily chart

• Emini tested up to the December 6 ^th high yesterday and after Wednesday's rally.

• While the rally was good for the bears, it is a disappointing bar due to the tail above it. This increases the odds of the market going sideways to down over the next several weeks.

• The odds favored sellers back at the December 6 ^th high due to disappointed bulls selling out of longs and bears looking to establish shorts.

• The bears, at a minimum, need to add to the selling pressure and make the market go sideways.

• The bears hope this is the start of a strong reversal below the moving average.

• Because the channel up has been tight, the odds favor sideways trading and not a strong reversal today or tomorrow.

• Overall, the bull channel forms a wedge top and will likely be corrected soon. This increases the risk of a test to the November 19 ^th low over the next several weeks. It is important to realize that the market can go sideways for a long time before the bears get the test down.
  

Emini 5-minute chart and what to expect today

• The Emini gapped down on the open and is testing yesterday’s low.

• Because of yesterday’s rally’s strength, the odds favor a trading range today, not a strong bear trend day.

• This means traders will probably look to buy and attempt to go below yesterday’s low.

• The bulls see the selloff that began at yesterday’s high as a pullback following the large bull breakout. Next (LON: NXT ), the bulls want a rally and test of yesterday’s high.

Yesterday’s Emini setups

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