Stock Market Futures Chop Higher But Traps Set

GOLD hits 1500. That’s big – and it appears there is more ahead -even as technical divergence exists. This has much to do with investor uncertainty and an uptick in stock market volatility.

The financial markets remain volatile as traders are reluctant to dip their toes in the water.

The macro news cycle is certainly getting much louder and the news continues to be very negative.

That said, markets are still holding higher lows on weekly and broad daily charts as major players are still chasing yield.

THE PRICE ACTION

The e-mini S&P 500 futures held its bounce after a deep fade into 2770. We are beginning to attempt a stairstep back up to 2912. This level is very important, breaching it will really bring buyers back in full force.

The mini Nasdaq is resisting 7517 and the recovery of 7840 will give us a relative reversal and send us back to bullish motion. The mini DOW traders can’t seem to get us over 26080 and until we do, that remains a warning signal. Fast moves are the order of the day. Watch your edges.

COMMODITY WATCH

Gold is much higher and still under technical divergence near 1505. Trading here should be with smaller size as the smaller pullback could break with the technical divergence. Currency moves continue at the forefront of the markets this week and over the coming months. The USD index fell like a stone near its high into 99 and continues to drift lower. WTI has fallen out of its channel -EIA today – and very likely to bounce back into the base of the range near 54.5. Failing to recover 54 would be quite bearish.

INTRADAY RECAP

Bearish slant as we bounce off deep support but stalling at old support that is now resistance. The levels and range between 2881 to 2912 is the watch data for the e-mini S&P resistance with 2867-2854 as support. The mini Nasdaq is within the range between 7617 resistance and 7472 support.  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.

OVERALL WIDE ANGLE 

Divergent action still sits below the movement of price on both sides of the trades – long and short – but traders are still looking at deep support edges to bounce.  They are currently failing in this endeavor as we search for stabilizing support below.

SHORT TERM LONG INTO RESISTANCE – BIGGER PICTURE STILL SHORT SO BOUNCES INTO RESISTANCE.

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.

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