The eminis futures market analysis using the TradersHelpDesk indicators is the topic in this video with Gail Mercer, founder of TradersHelpDesk. These markets have been moving up but weakness in the uptrend on the higher time frames is beginning to show. Although the bias at the moment is to the upside, both trend and counter-trend traders should be aware of the potential weaknesses as it may affect profits on long positions.
Eminis Futures Market Analysis
Beginning with the Russell 2000, the weekly is reaching up to the line of red dots. If price reaches the dots and the stochastics does not go higher and a bearish bar develops, this could indicate an upcoming retracement. Additionally, the daily shows a strong line of resistance at around 1600. While the 6 hour chart does show momentum to the upside, there has been prior divergence, with the fast moving average acting as support.
The S&P 500 weekly chart shows that price is currently testing the congestion dot. A prior high at 2945.25 formed in October of last year and may be retested. On the daily chart, the fast moving average is acting as support for price. Again, more upward movement is expected. On the 6 hour chart, although divergence has formed on the highs, hidden divergence formed on the lows, fueling more upward movement. If the stochastics and RSI fail to move higher, divergence will again form if a bearish bar comes in on the 6 hour chart.
Finally, the Nasdaq 100 weekly chart shows price is heading to the 7750 – 7800 area. However, both the stochastics and ADX is overextended on the daily chart. This may be a period where they will remain overextended while the weekly is reaching to test the prior high. The 6 hour chart also shows hidden divergence on the lows and more upward movement is expected at the moment. This could change if the divergence on the highs continues.