S&P 500 Futures Trading Chart and Price Analysis – September 18
The Federal Reserve (Fed) will release its statement at 2pm today. Expect a big move in stocks and the S&P 500.
Repurchasing at the Fed level to keep rates at the levels the Fed proposed is the backdrop of chatter. Traders remain cautious as we keep the ranges set early in the week.
The big news is what we discussed in the trading room – that oil continues its fade back to the top of the expected move ranges – that number is still more than 1$ below its current price. Down in the 57ish area, we may see some significant battles. Watching this carefully.
WEEKLY PRICE ACTION
Support holds near last week’s levels – 2984 -with 2991 above that. We are vulnerable to lose these levels as traders are skittish (particularly with news of financing troubles underneath) but as before, deep dips will still bring buyers due to the undercurrent of bullish action. If we look at bigger pictures, all the watched indices are still in breakout formations. Reversal zones at the upper edges near 3017 to 3025. We are right in the middle of this range between support and resistance.
Weekly charts continue to show flattening momentum but we hold above major moving averages. The line in the sand today is 3003 – above this zone, buyers will be more brave than beneath 2999
COMMODITY & CURRENCY WATCH
Gold prices bounces off 1500-1506 – but continues to run into trouble above in the current negative trend near 1512-1517 as resistance. The sweet spot still sits between 1478 to 1447 for deep support. So far, however, 1493 seems to be strong support.
Currency chatter remains in play with the dollar holding its upside above 98. WTI has failed its breakout – and it is interesting to me that HFT behavior has not been assessed in this move. Outsized moved like this have been algorithmic for a while and this seems to be the case. Aramco says they will be back online in a couple of weeks.
TRADING VIEW & ACTION PLAN
Breakout in progress but stalling at the 3000-3006 levels -deeper pullbacks to engage long. Some whipsaw action should be here as we wait on the FOMC meeting today. Follow the trend in the shorter time frames and watch the price action. That is POSITIVE AS LONG AS WE HOLD ABOVE 2987 today. Do what’s working and watch for weakness of trend. Please log in for the definitive levels of engagement today.
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.