Market Analysis (18 May’21)

The S&P500 futures (ES) have now potentially completed the ‘B’ wave of a classic A-B-C pullback pattern. For the pattern to play out, ES needs to drop below 4000 during the next several sessions.

ES, 1h

One of the reasons to consider the A-B-C pullback pattern is the bearish divergence between the SPX and the % of the S&P500 stocks above their 50d MA.

SPX and SPX50r, daily

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