Who knows what to expect any more from these markets?!? Yesterday’s rally was so one dimensional. The early morning update did signal a long bias for the s&p, but it gets discouraging when these moves higher really never give enough of a pull back to find long positions. I thought some solid highs were in for the day, but the s&p ended up rallying another 7 handles, while the nasdaq rallied another 10 plus handles into the close of the day. What makes it even tougher is last nights move that saw the s&p tally 12 handles lower from its settle, while the nasdaq saw a move 18 handles south.
What gives? For today- i like the current overnight high in the s&p and if it reaches that level on the regular session, i will look to short the 1699.60 price at first asking. There are other levels of interest, but if this move continues to rampage higher, the 1707.60 price is a solid target for today. As I write this future is working under its settle price, which is a small signal of weakness.
This future has a first area of support in a tight range that begins with its downside # price of 1681.20 and follows with the short value price of 1680.60 / daily pivot price at 1679.80. An early move under that area could see a retest of its current globex low of 1673.00, making the support price of 1672.60 a solid target objective. If the nasdaq extends above yesterday’s high, it finds a tough resistance area of 3214.50-3217.00, which i will short at first asking.
I expect that area to show a huge rejection if seen today. This future currently works above its settle price, which signals small strength, which in turn is an opposite indication from what the s&p is doing. Tough sledding out of the gate, but i would look for the settle price of 3193.50, daily pivot price of 3191.00, followed by the downside # price of 3189.50 to offer first support, as that area is tight. An easy breach takes a ride further south looking for other suport prices of 3177.00 amd 3172.00. Consumer sentiment at 8:55 a.m. follows with business inventories at 9:00a.m. good trading!!Th