Best Financial Markets Analysis Article The most interesting technical “event” of Friday for me was watching the S&P 500 e-mini futures chart violate what I thought was key near-term support at 864.00-863.50 but fail to follow-through to the downside. The bears could press only to 862.50 before the selling dried up. That is one of those “uh oh” moments technically. Where were the sellers? When they did not appear, I braced myself for an upside explosion – to make the new shorts pay a price – but guess what? The bulls did not, or could not, generate the explosive upside that I would have expected on the first Friday of a new month.

Yes, I am aware that after Friday morning’s low at 862.50, the e-Mini S&P staged two separate rallies of 15 and 12 points, respectively, to close the session on a firm note. However, to me the form of the rally juxtaposed against the decline from Wednesday’s high at 884.50 into Friday’s low at 862.50 looks corrective. If my perception of the near-term pattern is correct, then the e-SPM will visit 840-838.50 before it sees 885.00. Sunday night and Monday morning will be interesting indeed.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of

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