MARKET COMMENTARY
Buyers took control with a move up past front line support at 2851 on S&P 500 futures. It remains the zone to watch today with 2820 below that (if bears show up again).
Deep price support is being tested and it matters a lot as we come to the close of a week. Many traders are looking for 2820 to hold but if it does not, we will certainly have a likelihood of fading into 2794 and possibly 2769.
The lower close will strengthen the cyclical and seasonal downdrafts that we see in August and September.
Takeaway?
REDUX… Profit taking continues on the bounces. Stock pickers continue to excel with selective stocks performing in spite of the backdrop – caution required across the board, though. Don’t chase highs and let allow bounces to retest breakouts before engaging in longs.
THE PRICE ACTION
The e-mini S&P moved off support 2851 and will likely struggle into 2881. Though off its highs, is still holding well below 2900 – this matters from a weekly perspective, confirming more profit taking. The mini Nasdaq is rejecting 7605 for now but holding 7480, a support region of importance. The mini DOW traders have us above 25476 and pressing up against resistance near 25876. Today will be important.
COMMODITY & CURRENCY WATCH
Gold broke resistance, and is once again in clear breakout territory. Pullbacks remain buy zones. Currency moves continue at the forefront of the markets for another week and over the coming months. The USD index now holds above 98 resilient in its upward path against currency pressure elsewhere with 98.60 as the next line in the sand to breach. WTI is bouncing nicely into the end of the week as traders hold the floor and try to breach 56 and above.
INTRADAY RECAP
Ranges widen and as traders curbed selling, we hold levels between 2846 and 2887. The mini Nasdaq is battling in the range between 7480 to 7667. The mini DOW is holding support near 25246 with resistance sitting near 25949.
Continue to be careful here on the edges of your charts as we could accelerate out and continue if traders get too heavy on the edges, in which case, you’ll have to reverse your position. Markets feel quite bearish – which may lead to a tipping point and a reversal so use caution with size.
OVERALL WIDE ANGLE
Negative price action heads up near deep supports – but traders are still looking at deep support edges to bounce – see the weekly charts for this confirmation. Weekly charts are showing flattening momentum and some more downside weakness that that must be confirmed.
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.
