S&P 500 Continuous Futures RTH Data – Wedging onto Morning Reversal in the Green Zone?
On the bearish side today and per Spike Rules, we now have acceptance below yesterday’s spike low into the close. And the Index is trading below the 5-Day EMA (Red Line), and the Navigator Sell Trigger (Purple Line). Also, we are trading below last week’s high which would leave a spike reversal on the weekly chart if the market closes below 4539. And we are trading below the 4525 Volatility Trigger.
On a positive note, there is a falling wedge into the green zone Daily Expected Move low just above 4600. So a price reversal is imminent, and we will see how far up it carries us.
Intraday action can look bad at lunch and then completely reverse by the close. So it is the close that counts, and we will see where that takes us. Since price has been inside the falling wedge all morning, at best there have been some scalp trades but nothing traders could ride very long.
I am not trading today, but I will pass along these few thoughts.
Have a great weekend!
A.F. Thornton