S&P 500 Futures Index: A Clue To Capitulation

By Candy Matheson of Strawberry Blonde's Market Summary

Blogger & Retired Russell 2000 E-mini Futures Day Trader • Oct 12, 2022 at 2:48 PM EDT

When we see an extreme volume spike form on the monthly chart of the S&P 500 Futures Index, it may be close to a bottom/capitulation, particularly if it falls near one of the major support levels.

When we see an extreme volume spike form on the following monthly chart of the S&P 500 Futures Index (ES), it may be close to a bottom/capitulation, particularly if it falls near one of the major support levels, as shown.

Further bottoming clues are described, in detail, in my articles of October 2, September 30, and September 24, pertaining to the corresponding SPX and the SPX:VIX Ratio.

Until then, I expect volatility to continue, producing large intraday swings in both directions.

(Click on image to enlarge)

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