Friday, April 27, 2012

Broad-market financial index futures (/ES, /YM, /NQ) are short-term bullish

The markets advanced during trade today (April 26, 2012), particularly in the afternoon hours. By the close, the S&P500 and the NASDAQ each advanced 0.7%, while the DJIA was a relative outperformer with a 0.9 percent rise.

/ES, 20 d 15m

E-mini S&P500 Index Futures (/ES) have a somewhat interesting 15-minute bars chart over the past fortnight. Through the end of yesterday’s session, the contract’s behaviour was strongly influenced by two horizontal price channels: 1389 as resistance and 1354 as support.

Today’s rally over the 1389 resistance point confirmed an upward-sloping price channel that had been forming since Monday (4/23).

/YM, 20 d 15m

Price action of the past fortnight in E-mini Dow Jones Industrial Average Futures (/YM) has likewise been neatly contained by a price channel. The channel is moderately upward-sloping, and current price behaviour may threaten an upward break.

/NQ, 20 d 15m
The E-mini Nasdaq 100 Index Futures contract (/NQ) appears somewhat weaker than its brethren. Only this week has it broken from a downward-sloping price channel, and today’s rally was contained by a two-week old horizontal resistance line. The /ES contract, in contrast, broke through a horizontal resistance line of similar age during today’s trade.

The sum of these short-term perspectives, nonetheless, shows that the principal index futures are bullish relative to their past two weeks of price action.

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