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Major U.S. stock indices dropped sharply this week, with S&P 500 futures yesterday down as much as 4.4% since recent all-time highs. Friday’s upside breakout followed through into the contract’s Sunday opening, but quickly transitioned into a hard downward move as of Monday’s cash open. The /ES broke through support at the low end of the past month’s trading range near 4115 on a hefty -2.1% red candle that closed only a point off the low of the day. Additionally, Tuesday and Wednesday both showed volume spikes more than 50% above volume’s 50-day Simple Moving Average, and high volume on big price moves typically suggests greater conviction amongst traders.
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Wednesday s Market Minute: /ES Stalls At Highs
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