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Emini 2-Legged Sideways to Up

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Market Overview: S&P 500 Emini Futures

The market is forming an Emini 2-legged sideways to up on the weekly chart. The bulls must create strong follow-through buying to increase the odds of a trend resumption. If the market trades higher, the bears want it to stall below the March 25 high, forming a large double top bear flag.

S&P500 Emini futures

The Weekly S&P 500 Emini chart

Emini Weekly - Bulls Want Retest 20-Week EMA, Need FT, Emini 2-Legged Sideways to Up
  • This week’s Emini candlestick was an outside bull bar closing near its high with a long tail below.
  • Last week, we said the market could still be in the sideways to up pullback phase. Traders would see if the bulls could create at least a small second leg sideways to up leg to retest the April 9 high, or if the bears would be able to develop a follow-through bear bar instead.
  • The market traded lower early in the week but lacked follow-through selling. The market traded higher from Tuesday onward.
  • The bulls see the selloff (Apr 7) forming a major higher low.
  • They see the market being in a broad bull channel and want a resumption of the move.
  • They want a reversal from a higher low major trend reversal (Apr 21).
  • They want a large 2-legged sideways to up move to retest the 20-week EMA or the March 25 high. It could be underway.
  • They must create strong follow-through buying to increase the odds of a trend resumption.
  • The bears got a large 2-legged selloff testing the 200-week EMA in a tight bear channel.
  • They want the third leg down completing the wedge pattern after the pullback (the first two legs being the Mar 13 and Apr 4 lows).
  • They see the current move as a pullback. They want it to be weak, sideways, and lacking in follow-through buying. (overlapping candlesticks, doji(s), bear bars, long tails above candlesticks).
  • They hope to get at least a small sideways to down leg to retest the recent leg extreme low (April 7) even if it only forms a higher low.
  • They attempted to form a retest of the April 7 low this week, but the move lacked follow-through selling, forming a higher low (Apr 21).
  • If the market trades higher, they want it to stall below the March 25 high, forming a large double top bear flag.
  • They want the 100-week EMA, the bear trend line or the 20-week EMA to act as resistance.
  • The market is forming a 2-legged sideways to up pullback following the climactic and oversold conditions.
  • Since this week’s candlestick was a bull bar closing near its high, it is a buy signal bar for next week.
  • The market can gap up next week. Small gaps usually close early.
  • Traders will see if the bulls can create a follow-through bull bar testing near the 20-week EMA.
  • Or will the market trade slightly higher but close with a long tail or a bear body instead?
  • For now, the market may still be in the sideways to up pullback phase.

The Daily S&P 500 Emini chart

Emini Daily - Bulls Need Follow-through Buying
  • The market gapped down and traded lower on Monday. The market traded sideways to up from Tuesday onward.
  • Last week, we said the market could still be in the sideways to up pullback phase. Traders would see if the bulls could create strong bull bars breaking far above the 20-day EMA and the bear trend line. Or if the market would stall below the 20-day EMA or the April 9 high followed by a retest of the April 7 low instead.
  • The market formed a retest of the recent low on Monday but the move lacked follow-through selling, creating a higher low.
  • The bulls want a reversal from a climactic selloff.
  • They got a larger second leg sideways to up, trading above the 20-day EMA.
  • They see the move on Monday (Apr 21) forming a higher low major trend reversal.
  • They want a retest of the March 25 high and the 200-day EMA.
  • If there is a pullback, they want it to form a double bottom bull flag with the April 21 low.
  • The bears see the current move as a 2-legged pullback testing the breakout point (Mar 31).
  • They want the market to form a lower high and a double top bear flag with the March 25 high. They see a smaller double top bear flag (Apr 9 and Apr 25).
  • They want the 20-day EMA, the bear trend line, or the March 25 high to act as resistance.
  • They hope to get another retest of the April 7 low after the pullback.
  • They must create strong bear bars to show they are back in control.
  • So far, the market formed a large second leg side sideways to up.
  • The market may still be in the sideways to up pullback phase.
  • Traders will see if the bulls can create more bull bars breaking far above the 20-day EMA and the bear trend line.
  • Or will the market trade slightly higher but stall and reverse below the 20-day EMA instead?

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