S&P 500 Futures Trading Chart – July 22 Analysis
My Metastock custom system shows that bounces on the S&P 500 Index (INDEXSP: .INX) into price resistance will be sell zones.
In the last nine trading days, we have seen the moves between 3008 to 2971 with buyers showing up at the key levels of price support.
Range based bounces should continue but with negative drift, we should see lower highs. Note that we’ll reverse this negative drift with several days over 3016. Divergence still exists – and our levels of note on the S&P 500 still remain important – 3006, 2993, and 2974.
The failure hold above 2992 will signal that further dips will continue and a loss of 2971 brings 2758 to view.
Gold holds higher lows and is in breakout territory above 1422. Bitcoin and cryptos continue to bounce at support but bitcoin sits below the region near 11,000 as the dollar grinds back above 97, another key level. Oil slowed its sharp fade but traders are still battling around 56 -a very key breakout level.
THE BIG PICTURE -Daily momentum is mixed and neutral to positive and with some divergence. The breach and hold of support areas near 2993 will need to be hold if we are to recover. Below 2971, we’ll gain more traction in a move deeper down.
INTRADAY RECAP – Neutral as traders hold support above and bounce off 2971. Watching the support levels near 2961 and 2974 in the ES_F are on my radar today below and 2993 and 3006 above.
NEUTRAL TO NEGATIVE SLANT – CROSS CURRENTS PRESENT -BOUNCE ACTION VERY IMPORTANT- USE DIPS TO ENGAGE ONLY INTO RESISTANCE- TOO MANY TESTS OF SUPPORT WILL MAKE THIS TRADE MUCH MORE DANGEROUS
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.