Price failure on the weekly chart, S&P500 emini futures.
The S&P500 emini futres chart may be giving us a heads up on price action as last week closed with a doji with sellers in control. The futures market has gapped up a few points on Sunday evening but the price action would lead to a retrace to 1408 to close the gap or to the psychological support at 1400.
If price breaks through the support at 1400 then the next area of support for the weekly chart is 1378 which would be around the 50MA on the weekly chart. If this support breaks on the supporting trend line, the next area of support is is the swing low close to 1340. If we get a 40 point range for the week then 1380 area would be support. This would not be unusual as we have been getting 38-42 point ranges on the weekly chart with some less volatile weeks coming in around 28 points.
On the other side, if the S&P500 emini futures stay in a consolidated range we could see it return to the swing highs at 1435. If it extends this move there is a possibility of a move to 1453 then to our long term highs of 1460. We also have options expiration going into the Christmas Holidays. Watch for decreasing volume into the week as traders are taking off. The question is on expiration with the decreasing volume will traders be extending their positions. That is where we might see the move down.
Price failure on the weekly chart could be a major trigger to a reversal in the S&P500.