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E-Mini S&P Forms Weekly Reversal Top; Move Downside Indicated

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Nov 13, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    The shedding of risky assets put downside pressure on the December E-mini S&P 500 this week, leading to the formation of a closing price reversal top. This pattern often leads to the start of a 2 to 3 week break of about 50% of the last rally. A move through 1191.50 is needed to confirm the reversal top; otherwise it could go into sideways mode.

    Technically, a move through 1191.50 should lead to an acceleration to the downside. The current Gann angle/retracement zone set-up looks pretty ugly for the bulls. The first downside target is an uptrending Gann angle at 1150.75. This is followed by a Gann Angle/.50% support cluster at 1128.75 to 1128.50. This is this week’s primary target should sellers get aggressive. Under this price is a Gann angle at 1106.75.

    This week the December Japanese Yen confirmed last week’s closing price reversal top with a follow-through break to the downside. The primary catalyst behind the Yen’s weakness was the interest rate differential. Treasury Bond yields rose this past week while Japanese rates held steady. The increased spread helped draw investors into the Dollar. Compounding this incident was a hard sell-off in equities and the shedding of risky assets.

    Technically, the weekly main trend remains up, but the confirmation of the closing price reversal top is a sign of lower markets to follow. Often this pattern leads to the start of a 2 to 3 week break equal to 50% of the last major range. Based on the range of 1.0557 to 1.2466, the potential downside target is 1.1512 to 1.1286.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose

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