Stock Market Trading Considerations For October 19, 2017
The S&P 500 (INDEXSP:.INX) and Nasdaq (INDEXNASDAQ:.IXIC) are trading lower this morning as sellers finally show up in force. All eyes on key trading support levels, along with reactions to bounce levels. See below.
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S&P 500 Futures (ES)
The e-minis faded sharply here in the overnight – dipping right into the support zone we held last week near 2542. Buyers were eager to participate at this value area and we’ve recovered thus far back over 2547- the key area of support to hold. Failure to recapture that levels allows the likelihood of a test at 2539.5 and below. Traders continue to buy pullbacks in the current formation but lower volumes continue and suggest some measure of caution with size. The bullets below represent the likely shift of trading momentum at the positive or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen above a positive retest of 2554.5
- Selling pressure intraday will likely strengthen with a failed retest of 2547
- Resistance sits near 2560.5 to 2562.5, with 2565.75 and 2568.25 above that.
- Support holds between 2547.5 and 2542.5, with 2539.75 and 2533.75 below that.
NASDAQ Futures (NQ)
A sharp roll shows up overnight as traders begin to take profit (along with stops being taken out, I suspect) – as traders take us right into the congestion area between 6068 & 6086. Holding 6076 will still be important for recovery as it is the value area buyers hope to hold. The bullets below represent the likely shift of intraday trading momentum at the positive or failed tests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 6094.5
- Selling pressure intraday will likely strengthen with a failed retest of 6068.5
- Resistance sits near 6091.5 to 6101.5 with 6113.5 and 6127.75 above that.
- Support holds between 6076.5 and 6068, with 6055 and 6029.5 below that.
WTI Crude Oil
Oil traders decisively lost the level of 52.2 overnight and moved to test the weekly open near 51.40. Below 51.7, traders run the risk of further sell off and the fight to recapture that level is in progress. Deeper pullbacks are still likely to find buyers but failure to hold the key levels of support near 51.7 to 51.9, could give us a test of 50 once more. The bullets below represent the likely shift of trading momentum at the positive or failed tests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 51.78
- Selling pressure intraday will strengthen with a failed retest of 51.34
- Resistance sits near 51.7 to 52.02, with 52.24 and 52.45 above that.
- Support holds between 51.35 to 50.98, with 50.7 and 50.16 below that.
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.
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.