S&P 500 Futures Trading Chart – September 12
Stocks on are on the rise this morning after a break and hold above 3000 and so is gold and bonds as the ECB confirms they will continue with QE (quantitative easing) for as long as it takes.
If you are used to seeing relationships work inversely with markets and currency, prepare for a surprise as the levers get tugged on in this new landscape.
The markets are up, the dollar is up, gold is up, bonds are up. Use caution as this backdrop implies added risk on the edges.
WEEKLY PRICE ACTION
Support continues higher -near 2981 -with 2991 above that. Pullbacks are still buy zones in the breakout formation in progress. Expectations for upside moves have been met as premarket we tested the 3020 level. But that will likely be a reversal zone…. until it isn’t =). Bullish price action still suggests that support edges will be bought as more people flow into the US markets chasing yield.
We still sit in a proverbial coin toss of motion – though quite bullish on the edges. Weekly charts continue to show flattening momentum but we hold above major moving averages.
COMMODITY & CURRENCY WATCH
Gold prices bounces off 1500 with ECB news – but should still run into trouble above in the current negative trend. Allow these to settle and don’t think that you’re going to miss the bounce. The sweet spot still sits between 1478 to 1447.
Currency risks remain in play with the dollar holding its upside above 98.3 and pressing into 99. WTI was in breakout mode but failed dramatically -and now back at our 56 regions after news gets rehashed in the oil space. That said, bullish trades on pullbacks are likely.
TRADING VIEW & ACTION PLAN
Breakout continues but with buyers still timid -wait for the deeper pullbacks to engage. Some whipsaw action should be here as we wait on the Sept 17 meeting from the Fed. Follow the trend in the shorter time frames and watch the price action. That is POSITIVE AS LONG AS WE HOLD ABOVE 3000 today. Do what’s working and watch for weakness of trend. Please log in for the definitive levels of engagement today
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.