Daily Analysis

September E-mini S&P 500

U.S. equity markets are called lower this morning. The last two days the indices have faded into the close. The rallies this week also appear to be labored. This could be an indication that prices are getting a little too expensive for traders.

Yesterday the markets surged on better than expected U.S. housing numbers and an increase in consumer confidence, but the bulls couldn’t hold on to the early session gains. Today traders will be watching the U.S. durable goods and new home sales reports for clues that the economy is showing additional signs of recovery. Both reports are expected to be higher.

The chart pattern suggests that a short-term top may be forming. The September E-mini S&P 500 indicates that a correction to 1006.75 is possible. Traders have been buying dips near the 1022.00 area. If this pattern fails on the next break then look for the selling pressure to begin.