S&P 500 Index Futures Chart for November 26, 2019
As Asia markets opened with news from the Chinese, and traders spiked prices only to return to sit below our prior highs on the S&P 500 near 3132.
As mentioned yesterday, this is an abbreviated holiday week generally marked by an upward trajectory. Shorts at the breakdown levels continue to be poor trades, reminding us that the markets are still showing initial buying strength at support levels.
Repeated tests of support are not as likely to hold as the profit-taking from the last 6 weeks of upside may be engaged to do a bit more of that clearing of the decks before the next round of upside.
If we dip below 3110, S&P 500 futures buyers will need to defend 3106-3098, or we’ll move into 3078-3084 where we should see another group of buyers defend those lines in the sand. All near-term roads currently point upward, however, so we have our upward levels from 3144 to 3157 as potential targets ahead this week.
S&P 500 Index Futures – THE WEEKLY PRICE ACTION
With a 3145 rejection in the overnight session, we breached the top of our range with continuation pressure showing. Market participants may still be in a short term profit taking space as we have faded, and we faded quickly- a signal that there is a bit of supply above. The probable dips in the higher range between the 3097-3081 region we tested, as we did lose 3106 support before recovering last week.
Between 3134 and 3157 are still upshot targets in the near term so long as charts can keep Friday’s close near 3112. The weekly close will be important once more in this holiday week but closing over 3110 was a bullish signal from Friday. Positive momentum is continuing to flatten and weaken but holding. Weekly patterns remain strong as do the monthly patterns- from a price perspective. Be cautious adding to swing positions in either direction – particularly if you are considering shorts- as markets are not currently showing that short positions can gain traction at this time. This downdraft just feels like a little profit-taking for now.
S&P 500 Index Futures – Today’s INTRADAY motion is:
POSITIVE AS LONG AS WE HOLD ABOVE 3134ish today (with big spikes likely fading back into congestion)
CHOPPY BETWEEN 3127 AND 3109
NEGATIVE AS LONG AS WE HOLD BELOW 3110ish today (with sharp bounces failing and deep pullbacks holding)– choppy inside the range.
Do what’s working (that means follow short trend and momentum signals while in the intraday spaces) and watch for weakness to develop away from your trade direction in order to leave.
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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.