S&P 500 Futures Trading Outlook: Fading Into Support

Broad Stock Market Futures Overview for July 25, 2018

As I mentioned yesterday, it was reasonable to assume a fade into support on the S&P 500 (INDEXCBOE:.INX) and Nasdaq (INDEXNASDAQ:.IXIC). That’s what were seeing. Thus far, buyers do hold higher support.  However, fades could be deeper today so let’s watch that support entry.

As swing traders in the ES_F here (S&P 500 futures), we are entering on dips into 2795 to 2784 and pulling profits off as we test 2812 and 2824.

Sizes will be smaller on the next tests of these regions as they may not hold nicely if we have one more deep dip to lower regions.

S&P 500 Futures

Tests of resistance and higher lows still hold as we sit in a shallow dip. Divergence is still present but since the formations still favor value buyers we will look for them to appear at congestion.  The bullets below represent the likely shift of trading momentum at the successful or failed retests at the levels noted.

• Buying pressure intraday will likely strengthen with a bullish retest of 2820.5
• Selling pressure intraday will likely strengthen with a bearish retest of 2810.75
• Resistance sits near 2824.75 to 2828.25, with 2831.75 and 2834.75 above that
• Support sits between 2812.25 and 2806.75, with 2798.75 and 2791.75

NASDAQ Futures

Breakouts are faltering in this space as we fade into higher support. With a fade more than 75 points deep, our chart is coming into a support region near 7406 but buyers are struggling there right now.  It will be the line in the sand intraday.  Because we have moved so quickly, we do need to be alert to price reversals here that could take us to deeper support. The bullets below represent the likely shift of trading momentum at the successful or failed retests at the levels noted.

• Buying pressure intraday will likely strengthen with a bullish retest of 7427.75
• Selling pressure intraday will likely strengthen with a bearish retest of 7403.5
• Resistance sits near 7446.5 to 7471.5 with 7488.5 and 7505.25 above that.
• Support sits between 7412.5 and 7389.75, with 7378.5 and 7356.5 below that.

WTI Crude Oil

Buyers holding the bounce near 67.5- key higher support. Momentum is neutral but shifting somewhat as traders attempt a recovery with congestion and resistance near 69.07.  EIA report today is likely to shift volume profiles around for the week.  The bullets below represent the likely shift of trading momentum at the successful or failed retests at the levels noted.

• Buying pressure intraday will likely strengthen with a bullish retest of 68.57
• Selling pressure intraday will strengthen with a bearish retest of 67.95
• Resistance sits near 68.21 to 68.94, with 69.24 and 70.14 above that.
• Support holds near 68.10 to 67.79, with 67.56 and 67.06 below that.

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.