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Price Signal Summary - S&P E-Minis Bull Flag Formation

OUTLOOK
  • In the equity space, the trend condition in S&P E-Minis is unchanged and signals remain bullish. Resistance at 5430.75, the May 23 high and bull trigger, has recently been cleared. This break confirmed a resumption of the primary uptrend. Note that the recent pause in the trend appears to be flag formation - a bullish continuation signal. Sights are on 5594.66, the 2.618 projection of the Apr 19 - 29 - May 2 price swing. Support to watch is 5488.93, the 20-day EMA.
  • The trend condition in EUROSTOXX 50 futures remains bullish despite today’s pullback. The recovery from the Jun 14 low appears to be an early reversal of the May 16 - Jun 14 correction. Attention is on 5039.84, 61.8% of May 16-Jun 14 sell-off. Clearance of this hurdle would be a positive development. On the downside, a reversal lower would instead signal a resumption of the bearish corrective cycle that started May 16 and expose 4846.00, the Apr 19 low and a key support.

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