S&P 500 futures decline toward 3,620

• The US stock markets are closed on Thursday when American celebrates Thanksgiving.
• S&P 500 futures, trading as of 6:15 PM on the Chicago Mercantile Exchange, are trading slightly lower in reduced volumes.
• Futures are currently trading slightly above 3620, slightly more than 1% from all-time highs at 3668.

US equity markets are closed Thursday for the Thanksgiving holiday. Therefore, future share volumes are very slim in the absence of US participants. In fact, the Chicago Mercantile Exchange will be closing stock futures and options trading early at 18:15 GMT today, and S&P 500 futures appear poised to continue trading within tight ranges until then. As things stand right now, S&P 500 futures are trading around 0.2% lower, just above 3.620.

US equity markets are likely to remain quiet until the end of November, as US participants take long weekends in much larger numbers than usual.

S&P 500 futures form a short-term pennant

S&P 500 futures are currently consolidating into a short-term pennant. A break to the upside of this pennant should bring into view this week’s high of 3,655, and then if that level rises, a possible test of the all-time highs at 3,669.

If the pennant breaks to the downside, Wednesday’s lows at 3615 will come into play as the next support area to highlight. Below that, the 3600 psychological mark will be important, as will the support in the 3580s.

Around the 3580s, the upper bounds of the recent pennant of the equity index future will also come into play, the long-term pennant structure that was formed during the intervening days of November. For reference, this downtrend pegs the highs on Nov 9, 16 and 18 and will likely offer solid support.

4 hour chart