S&P 500 Futures Trading Chart – September 4
The S&P 500 Index INDEXSP: .INX gapped up last night after the news from Hong Kong showed tensions easing.
While only one of the five demands by protesters have been met, it is a step in the right direction. China does not want the foment of unrest to disturb their larger plans.
Market participants are still range bound as the Volatility Index INDEXCBOE: VIX stays above 20. We are still seeing what I suspect is ‘noise’ in the price patterns with deep support action holding in a market lacking in participation and sellers pushing us off the higher edges.
The price action will break – it is only a matter of when.
WEEKLY PRICE ACTION
Price support as the week continues is near 2881-2890 on the S&P 500 – this is watermark support for buyers with 2946-2957 as resistance.
Deep support tests into these levels should bring buyers as long as sellers do not tip the balance. This is the region of primary participation with size, all else equal this week. Resistance ranges are a bit ‘soft’ but generally between 2917-2944 for upside pressure; however, we could expand.
The region near 2897- seen last week as resistance, is now our new support edge region to watch. Price reversals outside these edges are still likely.
Expected moves from volatility ranges give us likelihoods of breaking out of ranges before pulling back – CAUTION if trading reversals today- stops should be tight and follow the breakout if it happens and momentum agrees. Weekly charts continue to show flattening momentum and some more downside weakness that that is confirming but still close to major supports.
COMMODITY & CURRENCY WATCH
Gold moved sharply before retracing – cementing the notion of ‘frothy’ price action in my mind. Silver and platinum continue to hold the pace as participants look for precious metals as a safe haven. Support levels in gold are still near 1530 but a break could push us to 1505 or so. Buying highs will give us quite a bit of risk exposure.
Currency risks remain in play with the .7000 drop in the USD index last night (creating a buying opportunity in my mind here at 98.57ish. Steep fades will create buying opportunities here. WTI is still solidly range-bound where buyers are more comfortable at deep support near 53-54 (sitting above 54 this morning) and sellers at higher levels above 56.8- 57.
THE TRADING VIEW
Thin volume due to whipsaw action and waiting on the Sept 17 meeting from the Fed. Range-based trading advised with edges defined above in the weekly formation. Limited participation with both size and engagement. be patient. Please log in for the definitive levels of engagement today.
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.