Futures, E-mini S&P 500 6-19-2014
E-futures S & P 500
June 19, 2014
0815, market awaits jobless claims. Report is due at 0830.
0930.Market open, with a small bear breakout, which was faded by the Bulls with the long bottom tail in bar number one; since during the pre-open of the market, buying pressure was accumulated.
The daily’s futures chart currently• presents the market with a double top. This could indicate that re-engagement of the six-month bull trend. However, provability can also state a short run to the daily moving average, however, on the daily chart, inertia is clearly with the Bulls.
The one-hour futures chart of the E Mini S&P 500, clearly indicates a strong sign of bullish inertia, after yesterdays late rally. Moreover, signs of price action in this futures market present a stronger case for the Bulls than anything else.
A suitable strategy under these conditions, for a more conservative play, is to look for a pullback in both, the daily chart and the hourly chart, using the five-minute chart as the entry base.
Back with the five-minute chart, we will look for entries that make emphases for the bullish case as a general premise in today's trading.
10:00, five minute chart.
Bulls are looking to retake direction of the market in bar number seven.
Conservative traders, will wait for the closing of bar number seven, and on the less the context after it. Aggressive traders could go a long in bar eight.
It's also important to remember, that some of the best trades, never look promising in the early stages. Bar number eight, shows an increase presence of buyers looking to extend the bullish rally.
Bar eight closed as a doji. Nonetheless, the bearish momentum has clearly been met with bullish price action, with bars eight and nine.
Bar number 10, presents the accumulation off early buying pressure. If it closes above its half and the moving average, higher prices are very likely; especially if the market reaches higher than the bar seven high. If that's the case, the market should be considered always in long.
Bar number 10 closed on its low, not a good case for the Bulls. Generally this market is illustrating accumulation of selling pressure, especially, if bar number 11 closes on its low. If the market reaches the levels of bar number eight low and lower, the market should be considered as always in short.
Bar number 12 is looking for the shorts to cover some of their positions and this could drive the market to the moving average. Aggressive traders, could go long during the initial minutes of bar number 12.
Bar 12 closed near its high, buyers below setting a target above the moving average into the bar number 10 high.
Market denotes two-sided trading, or trading range with accumulation of selling pressure with the close bar 13 at its midpoint. Bar 14 denotes the same premise, a doji bar with the close near its midpoint. However, signs of buying pressure are beginning to manifest. Remember, the market over all is in a bull trend. That bar 15’s price action, is setting the market to become always in long. If the close is near its high, higher prices are imminent.
With the bar 15 closing near its high, a strong reversal case for the Bulls could be made. Remember, if the market reaches the bar 7 high, the case for always in long could be proven.
Significant selling pressure with the bar 18 closing near its low and well below the bar 12 low.
Aggressive bulls will look to ride a probable short covering by the Bears near the moving average. Potential upswing after bar 20, this is according to probability in the price action. Thus, the target could simply be the middle point between the moving average and the bar 18 high.
The stock market futures tend to follow technical analysis closely. With the bar 21’s current price action, the previous target for a Bulls scalp, seems viable. However, market inertia remains with the Bears. Thus, shorts are ready to reengage at the movie average.
As stated, the top tail in bar 24 verified the previous premise. Shorts were waiting at the moving average. Accumulation of buying pressure is represented with the bull bars 20 through 25. Bulls will look for prices reaching above the bar 24 high in order to declare the market as always in long.