Hello Folks, the Emini S&P500 (ES) futures are at 2650. The futures broke their support at 2650 yesterday and went down till 2620 today morning, and have recovered from there back to 2650. However, 2600 is most likely to be tested once before any reversal, because the 200 day SMA is at 2596 currently, and the 200 day EMA is at 2610 currently. So the futures will most likely test 2600 level today or in the next couple of days before we can expect a reliable reversal.
We can expect a reversal from 2600 towards 2700 because the fundamentals of S&P500 companies are in good shape. But its very rare to see a reversal without testing the 200 day SMA when the index is so close to it. Strong support is at 2580, which should hold this time. Resistance is at 2680 and 2780. Please see the attached chart. Continue reading