In a thin tape intraday, a big seller in S&P 500 E-mini Futures ($ES_F) led this market from as high as +50bps to -90bps (currently). Key short term support levels have been achieved in major equity indices, and whether or not those levels hold will make or break this market.
$SPY’s 15-minute chart shows a bull flag nearing support with 1x bull divergence:
$IWM shows a more definitive bullish bias, with a bull pennant already resting on support with a more developed 2x bull divergence:
When I get strong signals of a reversal–particularly swing trades like these–I always look for echoes of affirmation in other broad indices, asset classes, or styles. This one checks out, but I await technical confirmations in about 48 hours…