S&P 500 Futures Trading Chart Analysis – September 6
The S&P 500 Index INDEXSP: .INX held gains into the jobs numbers this morning, which supports the muted (yet bullish) response.
The move might still be a squeeze but nevertheless it is a move and there is likely to see a bigger move as the markets globally have no place to go but here to capture yield.
THE WEEKLY PRICE ACTION
Support as the week continues is near 2912-2930 -a watermark for buyers with 2946-2957 as resistance broken and expanded into 2981 and holding. Pullbacks are still buy zones in the breakout in progress.
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 struggling to confirm but still close to major supports.
COMMODITY & CURRENCY WATCH
Gold price is fading and well below the support zone of 1530 as of this writing. Late arrival to the party participants in silver and other metals are feeling more pain as we fade off the highs. Lower support levels in gold could break could push us to 1505 or so. Allow these to settle and don’t think that you’re going to miss the bounce. Anxious is never a good a thing.
Currency risks remain in play with the dollar fading into the 98 area. Steep fades will create buying opportunities here-but the fade into 98.57 couldn’t catch a bid, so we are now near 98. WTI is still solidly range-bound where buyers are more comfortable at deep support near 53-54 (sitting above 55 this morning) and sellers at higher levels above 56.8- 57. This chart will likely press higher if the market holds.
Breakout but likely whipsaw action and waiting on the Sept 17 meeting from the Fed. Follow the trend in the shorter time frames and watch the price action. The caveman view – do what’s working and watch for weakness of trend. 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.