The S&P 500 spread expiring Friday is wider as increased volatility creeps into the charts – it’s now 27 points around the 2735 strike leaving us 2708-2762.
This come on the heels of yesterday’s reversal off the highs.
Momentum is still bullish across broader time frames, which suggests that indexes like the S&P 500 and Nasdaq futures are likely to bounce here. I’m watching 2708 on S&P 500 futures.
This pullback is a bit deeper than recent ones as momentum shifted gears a bit on yesterday’s failed retest of the highs. The big question now is: Can we bounce off support congestion support levels (see video below) and recover 2730?
The character of this bounce will be telling and, if weak, could present short opportunities for the nimble (and into known supports below).
Overall, we are in holding a pattern waiting to see if this reversal carries any deeper/stronger meaning.
Stock Market Futures Update – February 7, 2019
The author trades stock market futures every day and may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.