Daily outlook for August 29 – S&P 500 mini futures (ES)
Friday’s early sell-off was reversed after a speech by Fed chairman Bernanke hinted that the Fed may take further stimulus action next month. The bounce strength seemed strong, but the volume contracted an the price advanced.
Based on the daily chart (below) there is a triangle pattern, which is a neutral pattern. From today to the end of August, price may continue within this triangle pattern for a sideways move, unless ES makes its breakout from either 1188.50 or 1130.
The hurricane may may mean fewer traders are active today. The volume may be very thin and price may have high volatility moves. Stay cautious.
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ESU1 Daily chart
