S&P 500 Futures Trading Outlook For January 4

Stock Market Futures Outlook for January 4, 2017 –

After a fade into opening prices, S&P 500 futures (ES) lifted right back to the top of the congestion zone around 2257 this morning. Bullish action is present as buyers continue with higher lows. Pullbacks on the S&P 500 (INDEXSP:.INX) are quite likely to be bought, and higher lows suggest that buyers are intent on holding control.

Buying pressure will likely strengthen above 2257 on S&P 500 futures. Selling pressure will strengthen with a failed retest of 2250. Resistance sits near 2261 to 2264.75 with 2267.75 above that. Support holds between 2246- 2240 with a failed test of 2250.

See today’s economic calendar with a rundown of releases.

TODAY’S RANGE OF MOTION

E-mini S&P 500 Futures Trading Chart For January 4

Upside trades – Two options for entry

Positive retest of continuation level -2261.5

Positive retest of support level– 2252.5

Opening targets ranges – 2254.75, 2256.75, 2260.75, 2263.75, 2267.5, 2269.25, 2271.25, 2272.75, 2275.50, 2278.25 and 2282.50

Downside trades – Two options for entry

Failed retest of resistance level -2260.5

Failed retest of support level– 2251

Opening target ranges – 2256.75, 2252.75, 2249.75, 2246.50, 2242.75, 2239, 2235, 2231.50, 2227.75, 2224.25, and 2221.75

Nasdaq Futures

The NQ_F now sits close to resistance as bullish action gives us higher lows here as well. Momentum is bullish, but as long as buyers cannot breach 4940, we will be vulnerable to selling in the chart.

Buying pressure will likely strengthen above a retest of 4924 that holds. Selling pressure will strengthen with a failed retest of 4898. Resistance sits near 4941 to 4952 with 4958 above that. Support holds between 4879- 4898 with a failed test of 4904.

Upside trades – Two options

Positive retest of continuation level -4924 (needs confirmation on tight time frame)

Positive retest of support level – 4879.75 (also needs confirmation)

Opening target ranges – 4885.25, 4891.75, 4897, 4905, 4912.75, 4917.75, 4924.5, 4930.50, 4936.75, 4940.75, 4947.75, 4952.75, 4959, 4962.25, 4966.75, 4973.25, 4978.5, 4988.25, 4994, 4997, and 5002.25

Downside trades- Two options

Failed retest of resistance level -4921.25

Failed retest of support level– 4904

Opening target ranges – 4917.25, 4912.25, 4908.50, 4905.25, 4897, 4891.75, 4885.25, 4879.75, 4871.75, 4861.75, 4857.5, and 4851.75,

Crude Oil –WTI

The WTI contract expiring in February is sitting at critical support. We are caught in a wide band of motion. Momentum is mixed so I anticipate wide candles. The region of congestion is between 52.32 and 54.24

Buying pressure will likely strengthen above a retest of 53.29 that holds, but price action has elements of range bound behavior and needs retest formations. Selling pressure will strengthen with a failed retest of 52.22. Resistance sits near 53 to 53.47 with 53.78 above that. Support holds between 52.12 and 51.5 with a failed test of 52.47.

Upside trades – Two options

Positive retest of continuation level -53.10 (needs confirmation)

Positive retest of support level– 52.5

Opening target ranges –52.77, 53.03, 53.3, 53.56, 53.78, 53.94, 54.07, 54.35, 54.5, 54.77, 54.9, 55.24, 55.34, 55.7, 56.05, and 56.5

Downside trades- Two options

Failed retest of resistance level -52.7

Failed retest of support level– 52.44 (watch support near 54.22)

Opening target ranges – 52.81, 52.53, 52.3, 52.09, 51.85, 51.56, 51.3, and 51.12

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.

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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.