S&P 500 Futures Update: Do Buyers Have Power To Lift Market?

s&p 500 index futures trading chart decline lower june 12 news image

The rejection of 2911 yesterday on the S&P 500 Index (INDEXSP: .INX) keeps the bigger picture of the failed retest of old broken support.

As we now hold near 2880, the question becomes – “do buyers have the power to retest these broken levels and move forward?”

The ability to breach and hold 2823 will reverse the broken trend that appeared at the end of April. Until then, however, we are looking at formations that are likely to weaken with each bounce before breaking again.

BIG PICTURE -The weekly bearish trigger went off at the failed retest of 2923 with the confirmation at the loss of 2913 after that. The final support target near 2839 for me gave us a trigger of support and this is the support bounce formation that we are running through.

Sign up for our FREE newsletter
and receive our best trading ideas and research

The wait state is here and we are trading the formations in-between the resolution of price behavior of the current scenario and today.

RECAP – The long countertrend push higher in the markets, though present, is faltering. The Fed funds rate futures still predicts a high likelihood of rate reduction ahead and the dollar is still battling at support for a third day and as gold recaptures its breakout levels near 1339. Bonds are still stalling out a bit, even as chatter about yields falling further looms as forward. $ES_F Buyers stronger above 2886.75 but face resistance to 2923. 

TAKEAWAY – Bullish bounce in an intermediate bearish trend signal tells us that for the moment as long as we hold higher supports, we will either stay in the range or head higher. The backdrop of global slowdown and trade chatter still prevails.

INTRADAY – Sellers want to move us below 2878 intraday – buyers want us above 2897 

Twitter:  @AnneMarieTrades

The author trades stock market futures every day and may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.