The e-mini S&P stock index futures (ES) have been trending gently higher for several months and this week scored another new all-time record high. “The trend is your friend” in trading markets, and the trend in the e-mini S&P remains higher. There are no early technical clues to suggest a market top is in place. Thus, the trend in prices will very likely remain sideways to higher until a significant near-term bearish chart signal occurs.
The e-mini S&P bulls’ next upside price objective is to close June futures prices above solid technical resistance at 1,650.00. The next downside price objective for the bears is to produce a close below solid technical support at 1,600.00.
The U.S. stock indexes are an important, “outside market” that has had a significant influence over many other markets in recent months. Such will likely continue to be the case in the coming months. My friend and market analysis software pioneer Louis Mendelsohn has been studying this markets relationship phenomenon, called Intermarket analysis, for decades. No trader should overlook or underestimate the importance of the Intermarket phenomenon.
From an important Intermarket analysis perspective provided by VantagePoint Intermarket Analysis software (www.TraderTech.com), it appears the e-mini S&P 500 stock index futures prices will see some more price gains in the near term.
VantagePoint is a valuable trading tool for which a trader can glean clues on potential near-term price trend changes or continuation of present trends. These near-term clues provided by VantagePoint can and do give a trader a key edge.
See on the VantagePoint daily bar chart for the June e-mini S&P index that the Predicted Medium Term Crossover study shows the blue predicted 4-day exponential moving average is above the actual black 10-day simple moving average close, and both lines are trending higher, which is a near-term bullish technical signal.
The Predicted Medium Term Crossover is the predicted 4-day exponential moving average of typical prices one day ahead (P4EMA+2) crosses above or below the actual 10-day simple moving average close (A5SMA).
It’s the early technical clues such as the Predicted Medium Term Crossover, provided by VantagePoint, which are so valuable to traders in their quest for consistent trading profits.
Also see at the bottom of the daily chart for the June e-mini S&P index that VantagePoint’s Predicted Neural Index (PIndex) is also in a bullish mode, with a reading of 1.00. The PIndex is a proprietary indicator that predicts whether or not a three-day simple moving average of the typical price will be higher or lower two days in the future than it is today. The Predicted Neural Index compares two three-day moving averages to one another – today’s actual three-day moving average with a predicted three-day moving average.
When the predicted simple three-day moving average value of typical prices is greater than today’s actual three-day moving average value, the Predicted Neural Index is “1.00,” indicating that the market is expected to move higher over the next two days. When the predicted simple three-day moving average value of typical prices is less than today’s actual three-day moving average value, the Predicted Neural Index is “0.00,” indicating the market is expected to move lower over the next two days.
The Predicted Neural Index is either correct or incorrect so its performance can be measured in terms of percent correct to produce the accuracy statistics cited for VantagePoint, which has a predictive accuracy rate of around 85% across a wide range of markets and time spans in ongoing research.
