S&P 500 Futures Trading Update: Counter-Trend Bounce or Something More?

s&p 500 futures trading analysis june 10 price resistance chart news

S&P 500 Futures Chart – June 10

Momentum and short term trend remain bullish -after a weak jobs number that preceded the stock market bouncing sharply and into the very familiar 2886 region on S&P 500 futures.

This region will be very important today and possibly this week. Below 2882, the hand of bullish participants will weaken.

As I mentioned Friday, we simply cannot fight the trend and momentum moving in the same direction. But we also must continue to manage risk – these two together can be difficult.

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The long countertrend push higher in the markets is still intact. The Fed funds rate futures still predicts a high likelihood of rate reduction ahead and the dollar is now at an equally important level to hold. This has propelled enthusiasm for a lift in the markets and a sharp countertrend move holds in play.

TAKEAWAY – Bullish bounce in an intermediate bearish trend signal tells us that for the moment as long as we hold higher supports, we will either stay in the range or head higher. The backdrop of global slowdown and trade chatter disruption still prevails.

RECAP – S&P 500 futures $ES_F Buyers now stronger above 2886.75 but face resistance to 2923. Pullbacks into higher lows will be buy zones intraday and traders have a bullish slant overall (which I suspect is a bit toppy).

INTRADAY – Buyers are in control into resistance. Sellers want to move us below 2878 intraday but are willing to wait it out and stage the fade near 2897 and once more around 2915 if they fail to push prices lower at first. This is the current battle and could be a coin toss in terms of direction. Be alert.

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.