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E-MINI S&P (H2): Still Vulnerable Despite Bounce

EQUITY TECHS
  • RES 4: 4854.19 0.764 proj of the Oct 1 - Nov 22 - Dec 3 price swing
  • RES 1: 4800.00 Round number resistance
  • RES 2: 4783.78 0.618 proj of the Oct 1 - Nov 22 - Dec 3 price swing
  • RES 1: 4668.00/4743.25 High Dec 17 / High Dec 16 and the ATH
  • PRICE: 4597.00 @ 07:05 GMT Dec 21
  • SUP 1: 4520.25 Low Dec 20
  • SUP 2: 4485.75 Low Dec 3 and the bear trigger
  • SUP 3: 4493.88 61.8% retracement of the Oct 1 - Nov 22 rally
  • SUP 4: 4436.97 76.4% retracement of the Oct 1 - Nov 22 rally

S&P E-minis started the week on a softer note but have bounced from yesterday’s low of 4520.25. The sell-off late last week, signals potential for a deeper pullback. Note that futures have traded below the 50-day EMA. This is an important technical development as it strengthens a bearish threat and exposes key support at 4485.75, Dec 3 low. A break of this support would reinforce a bearish threat. Major resistance has been defined at 4743.25.

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