S&P 500 Futures Trading Chart Analysis – September 10
Markets still hold most gains as the breakouts hold across the global stock landscape, even after the deep dip into support below 2971 – that is the level to watch today on the S&P 500 Index INDEXSP: .INX
Pullbacks can be deeper as trendlines have been broken. We also sit below the VWAP.
Size remains a concern as markets show some negative divergence and algorithms present unique environments that widen risk. Sector rotation from momentum to value is engaged – lots of news in widespread shift.
WEEKLY PRICE ACTION
Support as the week begins is near 2969 -with 2981 above that. Pullbacks are still buy zones in the breakout formation in progress but we did break 2969 and we could not hold the retest of 2981. This is mildly bearish with the bottom of the volatility range reaching into 2951-2954.
Expected upside moves from volatility ranges could give us ranges into 3022 and beyond before reversing. Weekly charts continue to show flattening momentum and some more downside weakness simply has not broken below major moving averages.
COMMODITY & CURRENCY WATCH
Gold prices broke 1500 even as markets faded and struggle here. This is currently a big disconnect, but again, evidence of rotation. Allow these to settle and don’t think that you’re going to miss the bounce. The sweet spot sits between 1478 to 1447.
Currency risks remain in play with the dollar holding its upside above 98.into the 98.3. WTI is still solidly range-bound where buyers are more comfortable at deep support near 53-54 and sellers at higher levels above 56.8- 57.3 (sitting above 56.8 this morning). This chart will likely press higher as sector rotation to energy has engaged. Potentially early in the broad cycle but engaged, nevertheless.
TRADING VIEW & ACTION PLAN
Breakout continues but with buyers timid – wait for the deeper pullbacks to engage. Some whipsaw action should be here as we wait on the Sept 17 meeting from the Fed. Follow the trend in the shorter time frames and watch the price action. That is a bit NEGATIVE today. Do what’s working and watch for weakness of trend. Please log in for the definitive levels of engagement today.
Intraday trading from support edges like the VWAP or solid moving averages will give you the least risk event for engaging. Very hard to see more upside holding here, but follow the trend until candles stop breaking higher.
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.