The e-mini futures contract tied to the S&P 500 just had its third negative “outside day” in the past eight sessions. An outside trading day occurs when a security’s price range makes higher highs and lower lows than the previous day. To be a negative outside day, it should open higher compared to the previous day, trade to a new high, reverse and trade to a lower low, and close lower than the previous low (or at least lower than the previous day). an opening price). The previous day’s trading session should have smaller amplitudes and higher receivables. Chartists use these events to gauge market sentiment and potential trend reversals. In this case, it’s a downward shift. On Wednesday, the e-mini closed at 5,207.75, down from the previous day’s low of 5,260.25. The off-market trading days on April 1 and April 4 also saw negative values. Futures were trading close to support on Thursday, according to RJ O’Brien’s Tom Fitzpatrick. He said 5,191.50 to 5,193 is the level to test, with the next key level being 5,098, the e-mini’s 55-day moving average. However, chart analysts are dismissive of the three recent outside declines, saying they do not threaten the longer-term uptrend. “The development of these fatigue signals is contrary to the bullish long-term trend, which means they are not very convincing in our work,” Oppenheimer analyst Ari Wald said. “That said, we think the market should continue to move higher through the rest of the year.” Will Tamplin, an analyst at Fairlead Strategies, said that after strong gains, peripheral declines need to cause concern. “As the SPX has been consolidating over the past few days, the lower days on the outside become less meaningful,” he said. Last week, the index turned bearish for the first time since January 2022 as rising U.S. Treasury yields weighed on stocks. peripheral week. E-mini futures trade electronically, are cash-settled and represent a small portion of a stock index. —CNBC’s Nick Wells contributed reporting
