The S&P 500 Futures broke above the trend line and after selling off in the early portion of the session rallied to touch the 78.6% retracement line at 1346.27. The E-Mini’s have backed off slightly in pre-market trading. The biggest takeaway for me yesterday was that the huge pre-market move higher was tested but not rejected by the market. We have now broken the string of lower highs that were represented by the descending trend line.
While we did not get a perfect test of the trend line yesterday we did move down to within 3 handles. Maybe that’s enough. I will keep the line on my chart as a reference point for a potential larger pullback. We are now 45 handles off the 1302.25 low and 17 handles above the old trend line. The 1358 level is now in the market’s sights. The numbers of traders who are questioning this market’s ability to move higher was palpable yesterday. This tells me that a lot of people were caught leaning short Monday night and that there are enough stubborn shorts left to drag us higher.
However, yesterday was a very large move and it really needs to be digested so I would not be surprised if we chopped a little up here while everyone catches their breath and allows a lot of these economic data points to come in today through Friday. My new line in the sand is 1328, that was the low Monday and Tuesday. I would not be buying strength or selling weakness here. Buying dips and selling rips has worked and there is no reason to believe that has changed. This market will give us opportunities to enter, as it did yesterday in the 1333 area. If you did not get long down there I would wait for another dip. Patience is key here. The minute you chase a move like this you’re going to get left holding the bag. That’s just trading. If you want to be short your entry was our 1347 number from yesterday’s note with a stop at new highs. Very nice low risk entry. Just don’t get greedy on the short side. The uptrend is most certainly intact.
Today we have Challenger Job Cuts, ADP Survey, Construction Spending and ISM Manufacturing, . Note: The DOE Crude Inventories will be tomorrow due to the shortened week. Don’t forget to check out the Economic Calendar Tab here at mrtopstep.com: Mr Topstep Economic Calendar.
Support and Resistance Levels: We are currently trading 1344.00 -.50. Support levels are 1342, 1336, 1329 (50MA/TRENDLINE)1324, 1312, 1308, 1302. Resistance is 1347, 1352, 1358, 1366, 1373. Trade ‘em well and have a great day.
While we did not get a perfect test of the trend line yesterday we did move down to within 3 handles. Maybe that’s enough. I will keep the line on my chart as a reference point for a potential larger pullback. We are now 45 handles off the 1302.25 low and 17 handles above the old trend line. The 1358 level is now in the market’s sights. The numbers of traders who are questioning this market’s ability to move higher was palpable yesterday. This tells me that a lot of people were caught leaning short Monday night and that there are enough stubborn shorts left to drag us higher.
However, yesterday was a very large move and it really needs to be digested so I would not be surprised if we chopped a little up here while everyone catches their breath and allows a lot of these economic data points to come in today through Friday. My new line in the sand is 1328, that was the low Monday and Tuesday. I would not be buying strength or selling weakness here. Buying dips and selling rips has worked and there is no reason to believe that has changed. This market will give us opportunities to enter, as it did yesterday in the 1333 area. If you did not get long down there I would wait for another dip. Patience is key here. The minute you chase a move like this you’re going to get left holding the bag. That’s just trading. If you want to be short your entry was our 1347 number from yesterday’s note with a stop at new highs. Very nice low risk entry. Just don’t get greedy on the short side. The uptrend is most certainly intact.
Today we have Challenger Job Cuts, ADP Survey, Construction Spending and ISM Manufacturing, . Note: The DOE Crude Inventories will be tomorrow due to the shortened week. Don’t forget to check out the Economic Calendar Tab here at mrtopstep.com: Mr Topstep Economic Calendar.
Support and Resistance Levels: We are currently trading 1344.00 -.50. Support levels are 1342, 1336, 1329 (50MA/TRENDLINE)1324, 1312, 1308, 1302. Resistance is 1347, 1352, 1358, 1366, 1373. Trade ‘em well and have a great day.
ES | CL | GC | |
Daily Pivot | 1339.50 | 101.86 | 1537.0 |
Daily Pivot Range | 1342.00 – 1337.00 | 102.23 – 101.50 | 1537.5 – 1536.5 |
3 day Pivot | 1338.25 | 101.86 | 1532.26 |
3 day Pivot Range | 1341.38 – 1335.13 | 102.23 – 101.50 | 1534.3 – 1531.0 |
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