Tuesday, June 30, 2015
Update: 'S&P May be Signaling a 6% Correction'
Last Wednesday we looked at the potential development of a bearish technical pattern that took a bit of imagination to envision, but offered a generous payout if the 6% objective of the formation was eventually achieved (‘S&P May be Signaling a 6% Correction’). Subsequently, the September S&P E-mini future ‘elected’ this formation and has already declined 2.7% since that report was released. The technical formation suggests an additional 2.5% or more remains.
Again, the formation has been elected with the settlement below the neck line yesterday and the contract traded to and settled to new 3 month lows yesterday of 2047.25 and 2050.50 respectively. Today, the contract has traded lower still. The short term trend remains bearish.