Stock Market Futures Considerations For March 24, 2017
Range bound behavior on the S&P 500 (INDEXSP:.INX,) is visible as the bottoming event I mentioned yesterday held. This morning we are seeing a bounce higher. The short-term bottoming formation will likely be tested and that will be telling for near-term market direction.
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S&P 500 Futures (ES)
The chart did come back to retest the congestion near 2338, and presented higher lows than the prior day but we are not out of the woods yet. Holding 2338 will now be critical, else we’ll head lower into deeper support near 2327-2329. 2351 to 2355 still mark the levels to watch for buyers below these markers, sellers will have the weight of power. Support levels sit near 2336 and 2332.25 and still hold as we speak right now. I expect a bottoming formation to be tested. With a watchful eye on higher lows forming, I’ll still be looking at shorting events to build as we test resistance levels, and considering the longs off support hold behavior.
S&P 500 Key Trading Levels & Insights:
- Buying pressure will likely strengthen above a positive retest of 2351.5
- Selling pressure will likely strengthen with a failed retest of 2336
- Resistance sits near 2351.5 to 2356.5, with 2361.25 and 2367.25 above that
- Support holds between 2336 and 2332.5, with 2327.5 and 2319.5 below that
NASDAQ Futures
Premarket action couple with yesterday’s sideways motion paints the picture of damp momentum and consolidation in the area between 5347.5 and 5378. The edges here need to be watched as well but the Nasdaq (INDEXNASDAQ:.IXIC) currently holds more momentum than the S&P 500. As I mentioned yesterday, we did see 5378 as resistance, but as the lows gain, we’ll have the higher probability that we breach 5378 and run into 5395…. but that is not a strong likelihood as I see it at this time. We appear to be poised to chop around the range but if sellers take control with the failure of 5356, we could easily see the lows of prior days retested.
Nasdaq Futures Key Trading Levels & Insights:
- Buying pressure will likely strengthen with a positive retest of 5378.5 (use caution-wait for a retest)
- Selling pressure will likely strengthen with a failed retest of 5347.25
- Resistance sits near 5378.5 to 5382.5, with 5387.5 and 5395.5 above that
- Support holds between 5347.25 and 5334.75, with 5325 and 5299.25 below that
Crude Oil –WTI
As noted prior, small builds in oil, and draws in distillates and gasoline deliver a mixed package of news from our reports this week. We held prior lows yesterday, but could not break and hold resistance. Hence, we are range bound here as well. A broken wedge retest is showing, so the test of 48.2 remains very important.
Crude Oil Key Trading Levels & Insights:
- Buying pressure will likely strengthen with a positive retest of 48.5 (be careful here)
- Selling pressure will strengthen with a failed retest of 47.58
- Resistance sits near 48.54 to 48.84, with 49.12 and 49.72 above that.
- Support holds between 47.59 and 47.01, with 46.92 and 46.23 below that.
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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.
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.
