Monday, September 12, 2016
Post UK-EU Vote Emini S&P 500 Recovery Look-Alike
The S&P 500 e-mini future has recovered above the ‘mid’ from Friday and looks poised to discount the bearish implications of that session’s decline. The breaking price action on Friday was the largest since the UK leave vote. Not unlike the three session recovery which followed the heavy selling of the post-UK vote and prompted a Diagnostics By Candlelight Report ‘Move Along Folks – No Black Sway Here’, today’s price action may be telling a similar story.
A settlement in ESZ6 (December ’16 Emini Future) above 2143 today would discount the bearish implications of Friday’s decline. If today’s recovery falls short of this level today, it could still remove bearish implications if it gained such a settlement by Wednesday.