S&P500 futures has been in a consolidation mode after falling from near 1418 down to about 1355. The consolidation brought the price level back to 1390, holding below the 1400 handle, and more or less respecting the support of the double top seen in the 4H chart. Also, the RSI reading has tagged 30, failed to break above 60, and is now returning back below 40. This is a sign of bearish momentum extending.
The daily chart shows that the current bearish attempt is not only trying to break below the recent consolidation, but also threatening to break a rising trendline from Sept. 2011. A break below 1350 opens near-term pivot around 1335, then toward the 1300 handle (there is another pivot just above 1290.) Also note that the RSI in the daily chart is hovering above 40. A break below shows loss of the bullish momentum established during the 5 month rally since the end of Sept. 2011 to the end of March 2012.
Fan Yang CMT is a trader, analyst, educator and the Chief Technical Strategist of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.