After the recent rejection ahead of downtrend resistance from the all-time highs and a failure to close above the 200-DMA our technical analyst notes that the outlook for S&P 500 e-minis remains bullish, however, a corrective cycle is in play, signalling scope for a deeper pullback near-term. This is allowing an overbought reading in momentum studies to unwind. The 20-day EMA has been breached and attention turns to the 50-day EMA. Initial resistance is at 4,221.50, Monday’s high. Further out, key resistance and the bull trigger comes in at 4,327.50, the Aug 16 high.

Fig. 1: S&P 500 E-Mini Futures

Source: MNI - Market News/Bloomberg