Thursday's Market Minute: Bearish Action Still In Play For /ES Traders

Traders hoping that the recent downside volatility in S&P 500 futures had waned instead received a swift -1.8% downturn on Tuesday, followed yesterday by a weak rally that crumbled into the close. This week’s price action quickly sank below both the 21-day Exponential Moving Average as well as the 63-EMA, although it remained above the previous lows from September 20’s brutal sell-off.

Now the 100-day Simple Moving Average near 4330 is the one to watch in the coming days, as it was near where buyers were willing to step in last time. This is also roughly in confluence with the Parabolic SAR near 4325, so look for a support zone between these indicators. To the upside, the 63-EMA near 4385 is the next hurdle for bulls to clear to resume the uptrend. Watch for potential resistance near 4425 as well, as this represents the point where price would hit the downward-sloping trendline from the early September highs.

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