Emini S&P 500 Futures Down Significantly this Morning

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The Emini S&P 500 Futures are down by over 20 points this morning.  That is the most I have seen them down in the morning for maybe the last month or so.  So it seems we could finally have a real correction to the downside kick in during the last two weeks of August.

I am still seeing a decent amount of upside setups, but this possible downward bias in the S&P 500 the next couple of weeks is worth noting and probably makes it prudent to be more defensive and shorter term the next couple of weeks.  There may be more failure breakouts and continuation breakdowns in individual stocks and the indices for the rest of August.

The blue shaded area on the S&P 500 depicts a very short term trading range, but the more important trend is the green colored up trendline that defines our entire uptrend since the March lows.

We may break down out of this short term sideways rectangle and get a third test of the green up trendline.  That would put us near pretty good support of the 940 level.  So a support level combined with an uptrend line should give us an adequate retracement to build cause for the next up leg. 

But assuming we do get a test of the green up trendline, we want to be sure that it holds.

Sometimes the emini futures in the morning do a complete turn around once the market opens, but for now I think we could get a shorter term correction going to 940-950 range on the S&P.

Posted in Index Trading, Market Timing, SP500
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