Market Analysis (05 May’21)

While the S&P500 futures have been consolidating in a tight range between the 4100 and 4200 levels for the last 20 trading sessions (see ES chart below), the S&P500 Advance-Decline line has been consistently making new all time highs.

S&P500 Advance-Decline Line and SXP, daily

This type of ‘divergence’ is usually considered bullish for the underlying index. If that’s the case, we should see ES hold above the 4100 support and move above the 4200 resistance during the next several sessions.

ES, 4h

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