Stock Market Futures Push Higher; Traders Await Yellen

A positive divergence eventually showed up in price action overnight as stock market futures jumped higher.

The S&P 500 futures rose into resistance levels around 1865, which were noted as targets yesterday. I suspect a retest of 1847-1851 at some point.

The Morning Report: Stock Market Futures Advance Into Resistance Levels

With Janet Yellen speaking, it seems likely that stock market futures will settle into some jagged trading before we move ahead or give back significantly. Buyers will need to clearly defend 1847 on S&P 500 futures. This is the line in the sand to watch today. Continue to look for higher lows to see if buyers gain confidence to advance.

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Intraday resistance for S&P 500 futures sits near 1868.5. Intraday support sits at 1844. Momentum holds a slightly positive drift as continue north –pullbacks should find buyers. We are hyperextended from moving averages on longer time frames and this allow us to continue to rise into resistance zones near 1874-1883 in the near term

Shorter time frame momentum indicators are sitting in negative territory but lifting. Longer cycles are downward trending and holding steady in negative territory.

See today’s economic calendar with a rundown of releases.



Crude Oil Futures (CL_F)

Reminder:  EIA report today

Crude Oil lost key support levels yesterday and shot past lower support targets dramatically.

Today, the trading ranges are between 28.27 and 28.77, with breaches leading to continuation in either direction due to both hyperextension from the moving averages (pulling us up) and strong trending formations (pulling us down). Failure to breach the 28.70 region suggests that momentum brings us near the test of 28.3 again and perhaps another dip lower if buyers fail to come in at this new support level.

Moving averages on crude oil futures are back to being negative across all time frames save the shortest ones– daily charts show a complete retrace of the bounce action from weeks past. Hourly time frames show negative sloping moving averages.

Intraday long trading setups on crude oil futures suggest a long off 28.75 retest or 28.30 (with momentum showing positive, else that brings a lower high) into 29.1, 29.5, 29.65, 29.94, 30.31 and perhaps 30.9 if range expands

Intraday short trading setups on crude oil futures suggest a short below a 28.70 failed retest or a failed retest of 29.54 with negative divergence showing sends us to 29.27, 28.75, 28.44, 28.27, 27.87, 27.54, and perhaps 27.10.  Charts are very negatively biased.


E-mini S&P 500 Futures  (ES_F)  

Below is a S&P 500 futures chart with price support and resistance trading levels for today. Click to enlarge.

stock market futures sp 500 es e-mini chart february 10

The S&P 500 chart is holding steady near resistance levels -1867. A region of important support to maintain remains near 1847-1851.

Upside motion has the best setup on the positive retest of 1851.5 – or a retest after expansion above 1860.5. Targets from 1860.5 are 1863.25, 1866.5, 1868.5, 1870.75, 1873, and if we can catch a bid there, we could recapture 1880 -1886. Big resistance test sits at the region between 1884-1889. Be careful- watch the higher lows to keep you on the right side of any long trade in stock market futures. Expansions upside over the longer term could see 1942 to 1960.

Downside motion opens below the failed retest of 1847 or at the failed retest of 1860 on S&P 500 futures. Retracement into lower levels from 1860 gives us the targets at 1854.5, 1851.25, 1847.75, 1842, 1838, 1834.5 and perhaps 1826.5.  Below there, we have significant drops likely, but momentum suggest this is not in play currently. 1804.75, 1794, 1763, 1721, and 1614 lie below as longer term potential target zones if buyers do not provide support. We’ll keep our eyes on these expansion zones if the charts fail to bounce

If you’re interested in the live trading room, it is now primarily stock market futures content, though we do track heavily traded stocks and their likely daily trajectories as well – we begin at 9am with a morning report and likely chart movements along with trade setups for the day.

As long as traders remain 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.