Happy Fourth of July, traders!
The S&P 500 (/ES) is in a downtrend, and the weekly squeeze is firing short. The /ES is trading at -2 average true ranges (ATR) below the 21 exponential moving average (EMA).
Now the question is… will the market roll over and create a new low?
The other option is a reversion to the daily mean, or the 21 EMA. Think of this big rally as similar to the pullbacks we see in bearish trends. As swing traders, rallies to the weekly 21 EMA are our best opportunities to get short in bearish markets.
In the video above, we’ll review the structure of the major indexes and provide other tickers to observe to get more clarity on the market.
Stay Focused!