Broad Stock Market Overview for August 7, 2018
Traders battle at the edge of resistance today after a range expansion put us closer to the old highs on the S&P 500 (NYSEARCA: SPY).
Shorting remains the outside play while buying at the test of support holds as most reasonable with the least risk and exposure as prices keep heading higher. Patience is still key as grinding upside holds steady.
S&P 500 Futures
Higher support holds as this chart lifts out of its range below 2844. This comment held well from yesterday “Edges that break in this space are likely to retest – so the edges won’t likely signal breaks at the first pass into them”. What did happen was repeated testing with support continuing to hold creating the space to head higher. Today’s formation looks quite similar. WATCH SUPPORT TO KEEP HOLDING HIGHER if you are long. The bullets below represent the likely shift of intraday trading momentum at the successful or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen with a bullish retest of 2858.75
- Selling pressure intraday will likely strengthen with a bearish retest of 2844.75
- Resistance sits near 2854.75 to 2857.25, with 2861.75 and 2864.75 above that.
- Support sits between 2851.25 and 2847.5, with 2841.25 and 2838.75
Another morning with higher support gives traders a chance to press back to old highs. Price expands as this move grinds upward. Inside the space between 7444 and 7461 we may see choppy action. The bullets below represent the likely shift of intraday trading momentum at the successful or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen with a bullish retest of 7472.75
- Selling pressure intraday will likely strengthen with a bearish retest of 7440.5
- Resistance sits near 7465.5 to 7472.5 with 7486.5 and 7512.25 above that.
- Support sits between 7456.5 and 7447.75, with 7430.5 and 7418.75 below that.
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.