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.