Monday, July 25, 2016

S&P 500 Index Emini Brief Update; Continued Bearish Technical Developments

S&P 500 Index E-mini future (September - ESU6)  under 2159 at settle today would form another in a growing series of bearish candlestick developments.  
There were 10 new session highs without a 3 session pause (stretched) since the UK vote; a bearish hanging man July 19th; a bearish engulfing (July 20-21); a bearish harami (July 21-22) and possibly a bearish engulfing (July 22-25) if ESU6 settles below 2159 today.  The VIX Index too is 'off the floor' having formed a bullish hammer on July 20th which was confirmed on July 21st.
Might the weaker equity prices action indicate economic agents bracing for the Fed to leave the door open to a September policy response at Wednesday's, July FOMC Statement release?  Maybe.

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