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S&P 500 Works On Thanksgiving Top

Published 11/25/2015, 11:10 AM
Updated 07/09/2023, 06:31 AM

E-Mini S&P 500: December Future

ES is Still Working on a Top Before a Trip to 1950

ES is still hanging around forming small megaphones as we head into Thanksgiving. It’s working on a top before a trip to 1950 and ultimately the August 24 low, but it could hang out up here all the way into the NFP report next week if it wants to, especially since it hasn’t retested 2100 yet.

You could start a short to 2050 on any small topping pattern that breaks out downwards. But 2050 should provide support for a bounce that may put in a small right shoulder on the larger H&S (green or purple scenarios) but could go all the way to 2150 (blue scenario), maybe completing a triangle en route.

A genuine breakout through 2050 would cancel a potential rising wedge off the August 24 low, so that would be a strong set-up to short for more conservative traders.

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