Stock Market Futures Trading Considerations For November 27, 2017
The S&P 500 (INDEXSP:.INX) and Nasdaq (INDEXNASDAQ:.IXIC) are trading flat on Monday morning – likely digesting last week’s rally back to new all time highs. A successful consolidation may allow the bulls to push a bit higher yet. Check out my futures trading commentary and key price levels below.
Note that you can access today’s economic calendar with a full rundown of releases.
S&P 500 Futures
New highs and a hold of higher lows continue as we define new territory as we hold the breakout from last week. A rising wedge has appeared but in both prior cases of this formation, any minor breakdowns brought value buyers to the table. The SPX straddle expiring today holds around 9 points of potential movement. Straddle buyers were pleased last week as the range expanded -this week may be another story, but we’ll keep a close eye on the formation as there is that wedge. As long as support holds, we should have bullish action continue and value buyers should continue to step in. The bullets below represent the likely shift of trading momentum at the positive or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen above a positive retest of 2602.75
- Selling pressure intraday will likely strengthen with a failed retest of 2596.5
- Resistance sits near 2604.75 to 2612.25, with 2618.5 and 2623.5 above that.
- Support holds between 2601.5 and 2599.75, with 2596.5 and 2585.5 below that.
The NQ_F also tests new highs this morning and also site within a rising wedge. Bullish undercurrents remain strong but the environment still suggests waiting on higher support tests rather than following breakout motion. Grinding upward motion is the likely move on the day – watch support edges near 6400, as losing these levels without swift recovery suggests that sellers will have intraday control. Performers continue to be bought so watch support levels to engage in your favorites stocks within the index. The bullets below represent the likely shift of intraday trading momentum at the positive or failed tests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 6421.25
- Selling pressure intraday will likely strengthen with a failed retest of 6400.5
- Resistance sits near 6420.75 to 6430.5 with 6451.5 and 6462.5 above that.
- Support holds between 6402.25 and 6392.75, with 6386.75 and 6378.75 below that.
WTI Crude Oil
Oil holds higher lows this morning after a test of 59 on Friday. We are likely on the march to 60 at this time but should fade into breakout levels before doing that. Traders should be in a profit-taking space into 58 this morning. Resistance is now at 59.06 as momentum flattens somewhat. Support holds near 58.05. The bullets below represent the likely shift of trading momentum at the positive or failed tests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 58.86
- Selling pressure intraday will strengthen with a failed retest of 58.3
- Resistance sits near 58.8 to 59.04, with 59.6 and 59.96 above that.
- Support holds between 58.36 to 58.18, with 57.8 and 57.4 below that.
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.