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Strong E-mini Buying Pressure

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Market Overview: S&P 500 E-mini Futures

The market is showing strong E-mini buying pressure on the weekly chart. The next targets for the bulls are the 6800 and 6900 levels. The bears must create consecutive bear bars closing near their lows to show they are back in control.

S&P500 E-mini futures

The Weekly S&P 500 E-mini chart

E-mini Weekly - 3rd Leg Up, Stronger Buying Pressure, Strong E-mini Buying Pressure
  • This week’s E-mini candlestick was a bull bar closing near its high with a long tail below and in new all-time high territory.
  • Last week, we said the market may still trade sideways to up. Traders would see if the bulls could create follow-through buying and make new highs, or if the market would trade slightly higher but start forming prominent tails above candlesticks or bear bars instead.
  • The market made a new high to test the 6700 level this week.
  • The bulls want another strong leg up from a wedge bull flag (Aug 1, Aug 20, and Sept 2) or a double bottom bull flag (Aug 1 and Sep 2). The move is underway.
  • The next targets for the bulls are the 6800 and 6900 levels.
  • If there is a pullback in the weeks ahead, they expect at least a small second leg sideways to up to retest the current leg extreme high (now Sep 19).
  • The bears want a reversal from a wedge pattern (May 19, Jul 31, and Sep 19) and a buy climax.
  • They hope that the recent sideways trading range will be the final flag of the move.
  • The problem with the bear’s case is that they could not create sustained follow-through selling on the weekly chart since the April 7 low.
  • They must create consecutive bear bars closing near their lows to show they are back in control.
  • The move up since the April 21 low is in a tight bull channel, indicating strong bullish momentum.
  • The buying pressure is stronger (bull bars with follow-through buying) compared to weaker selling pressure (bear bars with no follow-through selling).
  • While the move is slightly climactic and overbought, the bears need to do more by creating strong consecutive bear bars to show they are back in control.
  • Without that, traders will not be willing to sell aggressively.
  • Since this week’s candlestick closed near its high, the market may gap up next week. Small gaps usually close early.
  • The market may still trade at least a little higher.
  • For now, traders will see if the bulls can create follow-through buying and make new highs.
  • Or will the market trade slightly higher but start forming prominent tails above candlesticks or bear bars, something the bears couldn’t do since the April low?

The Daily S&P 500 E-mini chart

E-mini Daily - 3rd Leg Up, Tight Bull Channel, Small Pullbacks
  • The market continued to trade sideways to up for the week, making a new all-time high.
  • Last week, we said the market remains in the sideways to up phase. Traders would see if the bulls could create follow-through buying in the weeks ahead, or if the bears would be able to create decent selling pressure instead.
  • The bulls want the third leg sideways to up, forming a larger wedge pattern with the first two legs being May 19 and July 31 highs. The move is underway.
  • The next targets for the bulls are the 6800 and 6900 levels.
  • They want the 20-day EMA or the bull trend line to act as support. They want an endless small pullback bull trend.
  • The bears want a reversal from a large wedge pattern (May 19, Jul 31, and Sep 19) and a possible buy climax.
  • They hope the recent sideways trading range will be the final flag of the move.
  • They must create consecutive bear bars closing near their lows, trading far below the 20-day EMA and the bull trend line, indicating they are back in control.
  • The move from the April 21 low is trading in a tight bull channel, indicating strong buying momentum.
  • The buying pressure remains slightly stronger (consecutive bull bars, tight bull channels) compared to the weaker selling pressure (weak and sideways pullbacks with limited follow-through selling).
  • While the market appears to be overbought and climactic, until the bears can create strong consecutive bear bars to show they are back in control, traders will not be willing to sell aggressively.
  • For now, the market may still trade at least a little higher.
  • If there is a pullback, there could be at least a small second legs sideways to up to retest the trend extreme high (even if it only forms a lower high).
  • Traders will see if the bulls can create more follow-through buying in the weeks ahead.
  • Or will the market trade slightly higher but start to stall, forming long tails above candlesticks or bear bars instead?

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