Monday’s rise above 2886 on S&P 500 futures (ES_F) gave traders the ability to jam stocks even higher (over 2900).
But this level was retested into Monday’s close. This is the beginning of an important area for bulls and bears (2878-2886).
I suspect that a move below 2882 will weaken the hand of bullish participants.
Both momentum and trend still stretch upward from an intraday perspective. The weekly bearish trigger went off at the failed retest of 2923 with the confirmation at the loss of 2913 after that.
RECAP -The long countertrend push higher in the markets is still intact. The Fed funds rate futures still predicts a high likelihood of rate reduction ahead and the dollar is still battling at support. This has propelled enthusiasm for a continued lift in the markets and a sharp countertrend move. Bonds are stalling out a bit, even as chatter about yields falling further.
S&P 500 futures $ES_F buyers now stronger above 2886.75 but face resistance to 2923. Pullbacks into higher lows will be buy zones intraday and traders have a bullish slant overall (which I suspect is a bit toppy).
TAKEAWAY – Bullish bounce in an intermediate bearish trend signal tells us that for the moment as long as we hold higher supports, we will either stay in the range or head higher. The backdrop of global slowdown and trade chatter still prevails.
INTRADAY – Sellers want to move us below 2878 intraday but are willing to wait it out and stage the fade near 2915 if they fail to push prices lower at first. This is the current battle and could be a coin toss in terms of direction. Continue to be alert –
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.