Stock Market Futures Trading Update & Outlook – October 25

Stock Market Futures Trading Considerations For October 25, 2017

Stock are trading sideways to lower after seeing a minor bounce yesterday. The S&P 500 (INDEXSP:.INX) is likely to re-test key short-term price support today and how buyers react at those levels will be important.

Check out today’s economic calendar with a full rundown of releases. And note that the charts below are from our premium service and shared exclusively with See It Market readers.

S&P 500 Futures (ES)

Support at 2561 this morning hold. We attempted to recover the fade but could not hold the levels.  This puts us in a wait state that is slightly bullish but tentative at best. Buyers have typically come to the rescue here as I mentioned yesterday, and a short did trigger on the failure to recapture 2571, but the hold at 2564 through the day pulled us out of the trade as we are in a generally bullish formation.  We can now see a test lower that has recovered but we need to get through 2567 before we can be more confident as buyers.  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 above a positive retest of 2572.75
• Selling pressure intraday will likely strengthen with a failed retest of 2560.5
• Resistance sits near 2567.5 to 2572.75, with 2574.75 and 2577.25 above that.
• Support holds between 2562.25 and 2556.5, with 2554.25 and 2549.5 below that.

NASDAQ Futures – NQ

The NQ is in a recovery space that is moving a bit more slowly than in times past, but it is still in one nevertheless, so pullbacks are likely to be buying spaces.  However, the levels near 6100 remain resistance.  The recapture of this level will bring buyers into the fray.  Below 6060, sellers will be more aggressive.  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 6083.5
• Selling pressure intraday will likely strengthen with a failed retest of 6060.5
• Resistance sits near 6089.25 to 6092.5 with 6103.5 and 6117.5 above that.
• Support holds between 6060.75 and 6052.5, with 6043.75 and 6029.75 below that.

WTI Crude Oil

The EIA report is this morning as oil on the higher end of the range bound region with tests above 52 now holding as support. Momentum still shows as more bullish but significant resistance still holds above.   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 52.57
• Selling pressure intraday will strengthen with a failed retest of 51.6
• Resistance sits near 52.4 to 52.62, with 52.85 and 53.32 above that.
• Support holds between 51.76 to 51.49, with 51.16 and 50.86 below that.

If you’re interested in watching these trades go live, join us in the live trading room from 9am to 11:30am each trading day. Visit TheTradingBook for more information.

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 the trader keeps himself 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.