Thursday's Market Minute: Equities Near The Breaking Point?

S&P 500 futures have seen choppy markets for the past two trading weeks, but yesterday finally brought a test to the downside and the overnight session brought prices back below 4500. The /ES completed a bearish MACD crossover yesterday on the heaviest daily volume in about three weeks. Meanwhile, the low of the day came just shy of a bearish Parabolic SAR crossover, which currently would trigger near 4488. To the downside, the first point to monitor is the 21-day Exponential Moving Average, currently near 4480.

Also, 4470 could be an important level to watch, as it is both near the previous lows from Aug. 26 as well as a high point from earlier in the month. Beyond that, the range between the 21-day EMA and the 50-day Simple Moving Average, currently between about 4378 & 4411, often served as a support zone for much of the time since the initial pandemic sell-off. If equities recover and the /ES starts to rally once more, watch near the yearly linear regression line around 4543 for resistance.