The Dow 30 (YM), S&P 500 (ES), Nasdaq 100 (NQ) and Russell (RTY) E-mini Futures Indices are in danger of being swallowed into their respective moving average “Alligator” formations (where the moving averages are offset into the future), as shown on the following daily charts.
If price is engulfed within and falls below these formations, we’ll see high volatility and wild swings ensue, with a possible correction in equities.
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