Emini Futures hourly downtrend Even if you don't
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Emini Futures hourly downtrend
Even if you don't trade the E minis, which is the futures market for the S&P 500, they are still a good thing to watch outside of market hours. Granted, the liquidity is lower off market hours and so a 5 point drop can be reversed long before open but I still like to watch how it reacts and anticipates news events.
In the chart below you can see that the E mini is in a downtrend on the hourly chart with pretty decent resistance on the 20 moving average. It has shown some support at 1365, but the pattern clearly shows consolidation at the lows, price below moving averages, and downward sloping moving averages. In other words the trend is down, and the trend is your friend. I still think the S&P cash will be lucky to hold 1300 this month and that although we could see a slight bounce, since it is in the vicinity of the 200 day moving average, that we still end up seeing it fall.
You don't need to look very hard for bad news, as Europe teeter totters and domestically we stand poised on "the fiscal cliff."
As traders we have no control over what other people do, we can only control whether or not we are on the right side of the trade.
[IMG]http://i.imgur.com/sGAnr.png[/IMG]
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