Market Analysis (11 May’21)

Today’s bullish reversal off of the 4111 support suggests that the S&P500 index might be forming a bearish Head and Shoulders pattern. For this pattern to play out, the following conditions must be met: 1) futures should retest 4200 level during the next several sessions and get rejected, 2) futures should drop to the 4111 support again, however, this drop should not result in a meaningful bullish reversal and finally 3) futures must tumble through the 4111 support on significant volume.

ES, 1h

SPX, daily

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