E-Mini, SPX Pullback Is Necessary
Favio Poci | Jul 28, 2016 08:48AM ET
Even the FOMC did not give the market a push to try for a new high, and price is still stuck in the same multi-day range. E-Mini S&P 500 failed to go above 2168 and is now testing an important Gann line (the one that supported post-FOMC bounce).
This article is complementary to our previous post .
E-Mini 4H Chart - July 28, 2016
If wave v is indeed completed than E-Mini needs to slide towards wave ii target below 2140 and test previous resistance - now support.
E-Mini 1H Chart - July 28, 2016
In the 1H chart, we have labelled both possible scenarios and the bullish one is the green. Now, ES is testing Gann line and a close below that would open the road to the next support - 2145.
Now, price is at 62% retracement of FOMC low and today's high.
How to turn bullish?
A close below 2156 would make it difficult to expect another new high soon, but the only way this turns bullish is if wave v is an ED.
- We have post-FOMC rally with a-b-c up (wave 1),
- the pullback now a-b-c down (wave 2).
- If 2152 holds then market might rally to try the upper-bound of the purple channel.
S&P 500 1H Chart - July 28, 2016
SPX chart has the same outlook and support for wave 2. Support includes:
- Gann lines
- Green bound
- 200SMA - black line
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