Fade in the markets into higher lows and an attempted strengthening of new prices higher as traders wait to hear from the Fed next week.
The Dow Jones Industrials – INDEXDJX: DJI – continues to hold below breakout levels and the S&P 500 Index – INDEXSP: .INX – is fighting at the level of 3016 that I am watching.
With several days over 3016, we may develop complacency into a fade in the hold higher but very interesting days ahead.
Divergences still exist across a number of time frames and levels of note we are on watch for are 3034, 3016, 2993, and 2974. The break below 2992 will signal that further dips if the bounce fails and then continuing to 2974 brings 2761 to view.
Gold holds higher lows and in ping pong fashion is fighting at breakout territory of 1422. Bitcoin and cryptos are under pressure – if the Fed fails to move 50 basis points, bitcoin will likely fill its gap below before bouncing again. The overnight session gave us another dollar bounce but below the breakout zone of 98.55. Oil continues to hold near 56 and bounce – extremely range bound so look for a move here soon.
THE BIG PICTURE – Daily momentum is neutral to positive and with divergence. The breach and hold of support areas near 3023 will need to be hold if we are to move further out of the range. Bouncing off 3017-3018 will be bullish. Below 3009.5, we’ll see sellers try to pounce but there should be no foothold they garner.
INTRADAY RECAP – Neutral as traders hold support above and bounce off 3004 but fail to breach and hold 3018. Watching the support levels near 3014 and 3004 in the ES_F are on my radar today below, and 3024 to 3034 above.
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.
