Monday's Market Minute: S&P Futures Struggling After Last Week's Rout

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Last week started out looking promising for equity index futures, but Thursday and Friday brought a combined -4.9% drop that left bulls reeling. The pain could continue this week, as S&P 500 futures today were down as much as -0.75% since Friday’s close and pointing toward a lower cash open. 

The first sign of potential trouble last week was when the /ES failed to close above its 200-day Simple Moving Average two days in a row; it since has fallen below most of its major moving averages, including the 21-day Exponential Moving Average, 63-EMA, 50-SMA, and 252-EMA. Another warning sign was that price fell below a confluence of support from 4,400 to 4,380, which included the old highs from late February/early March, the yearly -1 Standard Deviation Channel, and the yearly Volume Profile Point of Control (area of heaviest trading). Friday also brought a close significantly outside the lower Bollinger Band, which suggests a relatively extreme price and is typically regarded as a bearish signal. 

Look for potential support near the yearly -2 Standard Deviation Channel near 4,226 and the yearly 100% Linear Regression Channel near 4,186. Also, beware of the RSI crossing into the oversold territory, as this would suggest strengthening bearish momentum and would be viewed as another bearish signal. Beyond that, look for price to possibly find some footing near the old lows from February and April between 4,093 and 4,150.

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This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.