Stock Market Futures Outlook for January 10, 2017 –

After posting new highs, the S&P 500 (INDEXSP:.INX) chart has retreated but still holds above key support. For futures trading, that key support level is 2268. The trend is still bullish meaning the bounces off support are likely to hold. Earnings releases will begin this week and after a continued lift in the first week, traders will slow a bit as they wait out the releases.

Buying pressure will likely strengthen above a positive retest of 2271.50 on S&P 500 futures. Selling pressure will strengthen with a failed retest of 2259. Price resistance sits near 2274.75 to 2277.25, with 2280.75 and 2282.5 above that. Price support holds between 2254- 2251, with 2246.50 and 2241.50 below that.

See today’s economic calendar with a rundown of releases.

TODAY’S RANGE OF MOTION

E-mini S&P 500 Futures Trading Chart For January 10

s&p 500 futures es contract trading chart analysis january 10

Upside trades – Two options for entry–

Positive retest of continuation level -2271.5

Positive retest of support level– 2261.5

Opening targets ranges -2264.5, 2268.5, 2271.25, 2273.5, 2275.75, 2277, 2280.25, 2282.50, and 2285.25

Downside trades – Two options for entry–

Failed retest of resistance level -2274.50 (watch for higher support building)

Failed retest of support level– 2257 (Watch for 2260.50-2261.50 to potentially provide buying pressure)

Opening target ranges –2270.75, 2268, 2264.75, 2260.50, 2258.75, 2255.75, 2252.75, 2249.75, 2246.50, 2242.75, and 2239.

 

Nasdaq Futures

The NQ_F rocketed higher as managers put money to work in the most liquid of tech. So far, we are holding the breakout level of 5002 into the release of earnings beginning for the first quarter. Pullbacks should be bought in the current formation, however, I will be watching for the failed test of 5002 for a test of the real breakout near 4978.50. Buyers seem quite determined to create higher lows at this time, so a retest of 4994 might be the most we see in a pullback.

Buying pressure will likely strengthen with a positive retest of 5029 -chart remains very extended. Selling pressure will strengthen with a failed retest of 5002, though shorts are still countertrend today.

Resistance sits near 5026 to 5034, with 5040.5 and 5044.75 above that.

Support holds between 5002 and 4994.75, with 4985 and 4978.50 below that.

Upside trades – Two options

Positive retest of continuation level -5020.75 (needs confirmation on tight time frame)

Positive retest of support level– 5007.25

Opening target ranges –5012, 5017.25, 5020.75, 5025, 5029, 5034, and 5045

Downside trades- Two options

Failed retest of resistance level -5012 (lower highs/lower lows must have presented first)

Failed retest of support level– 5002 (watch for buyers near 4997 and 4994)

Opening target ranges –5007.75, 5002.75, 4997.75, 4994.75, 4991.50, 4985.50, 4978.75, 4972.25, 4968.75, 4964.50, 4960.25, 4955.75, 4954.5, 4949.25, 4945.75, 4941, and 4937.75

 

Crude Oil –WTI

Traders are having difficulty recapturing old support under the current conditions. A failure to breach and hold 52.5 will leave us under strong selling spaces that could bring us near the test of 50.4 – API report after the close today will be of interest.

Buying pressure will likely strengthen with a positive retest of 52.5, however, in the current formation, it is likely to bump into resistance ahead. Selling pressure will strengthen with a failed retest of 51.7-watch for a group of buyers near 51.4-51.5.

Resistance sits near 52.8 to 53.46, with 53.84 and 54.28 above that.

Support holds between 51.5 and 51.2, with 50.8 and 50.35 below that.

Upside trades – Two options

Positive retest of continuation level -52.5 (needs confirmation with positive retest)

Positive retest of support level– 51.84

Opening target ranges –52.09, 52.32, 52.52, 52.64, 52.8, 53.03, 53.23, 53.46, 53.82, 54.12, 54.28, 54.51, 54.76, 55.06, and 55.24

Downside trades- Two options

Failed retest of resistance level -52.8 (watch for higher lows to stop flow down)

Failed retest of support level– 52.03 (watch support near 51.79 -51.85 if a breach up intends to break the cycle)

Opening target ranges –52.51, 52.32, 52.12, 51.82, 51.56, 51.34, 51.2, 50.8, and 50.46

If you’re interested in the live trading room, it is now primarily stock market futures content, though we do track heavily traded stocks and their likely daily trajectories as well – we begin at 9am with a morning report and likely chart movements along with trade setups for the day.

As long as the trader keeps himself aware of support and resistance levels, risk can be very adequately managed to play in either direction as bottom picking remains a behavior pattern that is developing with value buyers and speculative traders.

 

Twitter:  @AnneMarieTrades

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.

 

Not Investment Advice – Please read investment disclaimer.