Looking at the weekly S&P500 futures ES1, there appears to be strong suggestion of more downside to come...
First, there is higher volume in the September sell off with supports being broken. 3065 holds an important support level, which is likely to be broken.
Second, MACD crossed down with momentum, suggesting weeks of downside bias.
Third, the net positions of the non-commercials (orange line, second last lower panel) and the largest 8 traders point to less accumulation, or worse, net selling. This is particularly clear in recent week (see fuchsia ellipses).
The above, together with the rise of the USD, is telling of more weeks of downdraft... like a perfect storm.
3000 appears to be a strong support level, and should be testing within the next weeks... leading up to a decision point just about at the US Presidential Elections.
Watch 2800 too by November.
Any additional perturbations will see a breakdown of 2800 support to 2400.
Volatility incoming!
First, there is higher volume in the September sell off with supports being broken. 3065 holds an important support level, which is likely to be broken.
Second, MACD crossed down with momentum, suggesting weeks of downside bias.
Third, the net positions of the non-commercials (orange line, second last lower panel) and the largest 8 traders point to less accumulation, or worse, net selling. This is particularly clear in recent week (see fuchsia ellipses).
The above, together with the rise of the USD, is telling of more weeks of downdraft... like a perfect storm.
3000 appears to be a strong support level, and should be testing within the next weeks... leading up to a decision point just about at the US Presidential Elections.
Watch 2800 too by November.
Any additional perturbations will see a breakdown of 2800 support to 2400.
Volatility incoming!
