Very simply, we may see the 4 Major E-mini Futures Indices (YM, ES, NQ
& TF) continue their trek down to the bottom of the channel on the
Daily charts below. None of the RSI readings are oversold yet,
nor are they diverging to signal a bounce. I would, therefore, assume that the
recent selling will continue.
As of today's (Tuesday's) close, downside
price targets would be:
- + YM = 13175 – 13200
- + ES = 1400 – 1410
- + NQ = 2650
- + TF = 800
To confirm any
further pullback, I'll be watching the two Daily ratio charts
below comparing the S&P 500 and Russell 2000 Indices to their respective
Volatility Indices.
further pullback, I'll be watching the two Daily ratio charts
below comparing the S&P 500 and Russell 2000 Indices to their respective
Volatility Indices.
The first is of the
SPX:VIX. Price closed today below the bottom of channel
support, but is resting on trendline support, which is a bit lower. A break and
hold below will spell further weakness for the SPX as volatility rises. A lower
Momentum reading is signalling more downside for the SPX, as there is no
positive divergence yet.
SPX:VIX. Price closed today below the bottom of channel
support, but is resting on trendline support, which is a bit lower. A break and
hold below will spell further weakness for the SPX as volatility rises. A lower
Momentum reading is signalling more downside for the SPX, as there is no
positive divergence yet.
The second chart
shows the RUT:RVX. Price also closed today below the bottom of
channel support, and is resting on horizontal price support. A break and hold
below will spell further weakness for the RUT as volatility rises. A lower
Momentum reading is signalling more downside for the RUT, as there is no
positive divergence yet.
shows the RUT:RVX. Price also closed today below the bottom of
channel support, and is resting on horizontal price support. A break and hold
below will spell further weakness for the RUT as volatility rises. A lower
Momentum reading is signalling more downside for the RUT, as there is no
positive divergence yet.
SB's DISCLAIMER: The information contained within
my posts may not be construed as financial or trading advice. Please do your
own due diligence before engaging in any trading activity.
