Discussion and news regarding the Federal Reserve meetings continue and we are expecting a reaction tomorrow. But how much is baked into the S&P 500 Index (INDEXSP: .INX).
Is the stock market index ready to breakout?
S&P 500 futures are breaking higher with news of likely interest rate cuts from the ECB.
This early morning bounce shows some divergent undercurrent but could easily swell into or above 2923 if momentum takes over. The bullish backdrop I have mentioned still holds but again – we need to be mindful of resistance (and support) at the edges. Breakouts will need confirmation, as crosscurrents are strong.
BIG PICTURE – Daily momentum has shifted positive but until we breach and hold 2923, the failure of this big upshot move still looms. The weekly support is far from where we are – 2839 with a bigger level at 2884.
INTRADAY RECAP – Rangebound between 2898 and 2918 with volatility holding a bit higher than in days past. Traders are still holding gold and it is moving higher once more. The Fed funds rate futures still predicts a high likelihood of rate reduction ahead. The dollar sits at intraday resistance currently.
Sellers want to move us below 2898 intraday. Pullbacks into higher lows will be buy zones intraday and traders have a bullish slant overall but breakouts are not likely to hold.
Manage your risk by waiting to the edges and playing the range with a bullish slant. The backdrop of global slowdown and trade chatter still prevails.
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.