S&P 500 Index Futures Trading Intra-day Analysis – October 29
Buying pressure still at low volumes and markets still look difficult to traverse. Cross currents still sit in the middle of all of this.
We have broken out and are now into bullish continuation. Pullbacks are buying opportunities but holding above 3033 is quite important to keep bullish pressure afloat.
The Federal Reserve reports Wednesday with what they are to do with rates.
WEEKLY PRICE ACTION
Neutral to bullish action with a hold over 3008 keeping us bullish (in terms of weekly closes), with slightly positive momentum present. Pullbacks ought to be buying regions but the question might be – have we attained a primary target from which we are likely to fade. Look below for the intraday motion parameters. Be cautious adding to swing positions in either direction.
COMMODITY & CURRENCY WATCH
Gold prices failed support but still sits in the channel I noted a couple of months ago in the trading room. Use caution with size – there is significant risk in the charts-in both directions as you saw yesterday from the spike up and swift fade. The US dollar is at a major support region and holding – for over a week now – clearly waiting for the Fed WTI sits well above 54.68 support after a large drawdown of US oil inventories stocks. EIA tomorrow. Resistance now sits at 57.85.
TRADING VIEW & ACTION PLAN
Buyers dance at the breakout level near 3030 in the ES_F which will hold as baseline support. Be patient and wait for your setups means that mornings like this that come into key support means that we can engage at this region. We are near a pivot of sorts as I write. Understand your levels and prepare for them. Realize that we could bounce higher than anticipated and fade deeper than anticipated before returning to the range. Follow the trend in the shorter time frames and watch the price action.
The theme of motion is
POSITIVE AS LONG AS WE HOLD ABOVE 3027 today (with big spikes likely fading back into congestion)
NEGATIVE AS LONG AS WE HOLD BELOW 3014 today (with sharp bounces failing and deep pullbacks holding)– choppy inside the range.
Do what’s working (that means follow short trend and momentum signals while in the intraday spaces) and watch for weakness to develop away from your trade direction in order to leave.
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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.