The S&P 500’s (INDEXSP: .INX) brief failure and recapture of the 2880 price support area gives traders the environment that holds fairly bullish for now.
However, we are in a little holding pattern with retail sales and industrial production coming tomorrow.
Jobless claims are ahead today but I suspect just a noisy patch of movement between a range.
The ability to breach and hold 2923 will reverse the broken trend that appeared at the end of April. Until then, however, we are looking at formations that are likely to weaken with each bounce before breaking again.
BIG PICTURE – The weekly bearish trigger went off at the failed retest of 2923 with the confirmation at the loss of 2913 after that. The final support target near 2839 for me gave us a trigger of support and this is the support bounce formation that we are running through.
We are still in the wait state and trading the formations in-between the resolution of price behavior of the current scenario and today.
RECAP – The long countertrend push higher in the markets though present, is faltering. The Fed funds rate futures still predicts a high likelihood of rate reduction ahead and the dollar is still battling at support for a third day and as gold recaptures its breakout levels near 1339. Bonds are still stalling out a bit, even as chatter about yields falling further looms as forward.
S&P 500 futures $ES_F Buyers stronger above 2886.75 but face resistance to 2923. Sellers want to move us below 2878 intraday. Pullbacks into higher lows will be buy zones intraday and traders have a bullish slant overall.
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.