Trader's Daily Notebook: We're Somewhere Between Neutral and Bearish

Despite pockets of significant strength and weakness, Monday's regular-session action in the equity futures was pretty benign. The E-Mini S&P 500 futures (Es), for example, traded only a bump over 700,000 contracts. And that's well beneath the 1-million-contract mark I generally consider to be on the lighter side of things.

Daily S&P 500 Futures
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My overall view of the Es and SPDR S&P 500 Trust (SPY) hasn't changed much over the past week. I continue to believe the short-term trend is somewhere between neutral and bearish, and I'll remain somewhat cautious when taking short-term trades until the Es begins to show strength above the 20-day (or 21-day) moving average (MA). As far as the intermediate timeframe is concerned, the repeated tests of the 50-day MA are concerning, but I don't believe we can be bearish until auctions begin closing beneath both the 50-day MA and the big figure (2400). Given that our last major breakout occurred around 2400, I have a sneaking suspicion that level is marked as the line in the sand for a number of different strategies....370 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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