S&P 500 Futures Trading Considerations For December 20, 2017
The S&P 500 (NYSEARCA:SPY) is recovering the bulk of yesterday’s losses in morning trade today. 2700 is a big number, and considering the run higher, perhaps some psychological resistance is in play. Let’s see how far today’s rally goes, then watch how price reacts. In the commentary below I share my outlook and analysis on key stock index futures, along with crude oil.
You can access today’s economic calendar with a full rundown of releases.
S&P 500 Futures
ES_F formations hold their bounce and could stretch to 2702.25 to 2706.75, but oddly, as the news of the tax bill getting closer to being done, traders did not push us forward but instead took profits. We are still quite bullish but may see another dip before a bounce into the week of the Santa Rally. We have not dipped into deeper support yet, but the short trigger suggested yesterday (2675ish) did not come and rested instead at 2683. Retracements have been shallow and should continue to be shallow unless profit taking catches hold. The bullets below represent the likely shift of trading momentum at the positive or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 2698
- Selling pressure intraday will likely strengthen with a failed retest of 2688.5 (countertrend)
- Resistance sits near 2694.5 to 2698, with 2702.75 and 2706.5 above that.
- Support holds between 2688.5 and 2683.5, with 2675.5 and 2671.25 below that.
NASDAQ Futures
New highs yesterday faded well but not quite into my target at 6474, but higher at 6479.5. The chart is now in a support test formation that should bring higher lows. The level to breach is 6534.5 for buyers to command control today. The bullets below represent the likely shift of intraday trading momentum at the positive or failed tests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 6534.5
- Selling pressure intraday will likely strengthen with a failed retest of 6514.5
- Resistance sits near 6533.75 to 6542.5 with 6564.75 and 6588.75 above that.
- Support holds near 6522.5 and 6514.75, with 6480.75 and 6437.75 below that.
WTI Crude Oil
Traders test resistance early this morning near 57.8 and reject again. Bullish formations steady and we are holding edges of higher support. Failed/successful tests of support or the failure to breach and/or hold resistance will be important to mark the trail of intraday direction. The bullets below represent the likely shift of trading momentum at the positive or failed tests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 57.9
- Selling pressure intraday will strengthen with a failed retest of 57.4
- Resistance sits near 57.88 to 58.1, with 58.38 and 58.65 above that.
- Support holds near 57.46 to 56.14, with 56.68. and 56.16 below that.
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.
