Commodity Futures Weekly Newsletter- For the week of May 19th, 2025
S&P Futures rally pushes to new recovery highs from the chart low of 4832.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Indices
S&P E-mini-Futures
S&P Futures rally pushes to new recovery highs.
Hello and Welcome! As usual, in this week’s newsletter we will start with the Indices, with the E-mini S&P in focus. The daily chart shows a continued recovery from the chart low of 4832, following a clear A,B,C decline from the chart high of 6,166.50. The market posted a 5,959.10 high this week.
Resistance moves to 6,090.25
The advance from the 4,832-chart low remains in 3-waves higher. The series of lower lows and lower highs from the top is no longer intact after the rally through 5,837.25. The recovery is currently labeled as Wave X and each leg of the 3-wave rise became equal in Wave X, at 5,824. Support remains at 5,127.25 for the advance and as it holds, the upward recovery would be thought to be in progress. With RSI still in bullish territory at 67.76, continue to expect further upside while reading out above 50. The next and final resistance area below the all-time high of 6,166.50 is located at 6,090.25. This is where the recent leg of the 3-wave rise from 4,832 becomes 1.382x the length of the initial advance in Wave X.
Conclusion
Continue to use 5,127.25 as critical support for the advance. With a sharp rally, there is little to identify as meaningful interim support. We can see, the rise is in 3-waves. If we witness a 5-wave rise from 4,832, the focus would be on a complete correction ending at 4,832 and a continuation to new highs above 6,116.50, toward 6,254.50, where the current leg of the rise from 4,832 reaches 1.618x times the length of the initial rise, and is listed on the chart. If critical support at 5,127.50 is violated to the downside beforehand, favor another zig zag lower toward 4,832 and 4,711 at the 23.6% Fibonacci Support of the entire rise to the 6,166.50 all-time high of the Index. The 5,520 high in the initial leg up from the Wave C low of 4,832 is the level which would be the closest area of support.
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Thank you!
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