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Emini S&P 500: Get Ready For Sideways Action

Published 08/12/2016, 09:46 AM
Updated 07/09/2023, 06:31 AM

S&P 500: Sept. Future

ES is Trying to Decide Whether to Put in the Red Flat-Topped Megaphone or Just Continue Higher in a Small Rising Megaphone

ES is working on the head of a head-and-shoulders top on top of its navy blue megaphone before a trip to the megaphone bottom.

The head needs to work its way higher. It can just start climbing (purple scenario) or it can put in another move to the bottom of the potential red flat-topped megaphone first (green scenario).

Then it’s back to the H&S neckline and into a right shoulder. I’ve drawn a simple right shoulder on both scenarios, but if the market wants to drag out the topping process even longer, it will put in a megaphone right shoulder before yet another squeaker new all-time high.

Weekly Emini S&P 500

Get Ready For A Prolonged Sideways Move

After ES finally completes a top up here and heads down to the bottom of its navy blue megaphone, it’s likely to put in one last new all-time high.

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