S&P 500 Futures Trading Outlook For February 8

Stock Market Futures Considerations For February 8, 2017

Another day of mixed momentum across the S&P 500 (INDEXSP:.INX,).  A lower high greets us, suggesting a tightening range of motion ahead today as buyers are still defending support fairly well.  That said, the trader who has tried to position short for long cycles has seen profits vaporize as buyers hold key levels.

S&P 500 Futures Levels To Watch

Buying pressure will likely strengthen above a positive retest of 2294.5, while selling pressure will strengthen with a failed retest of 2283. Price resistance sits near 2294.5 to 2297.5, with 2299.5 and 2302.5 above that. Price support holds between 2285.25 and 2283, with 2279.75 and 2275 below that

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

TODAY’S RANGE OF MOTION

E-mini S&P 500 Futures Trading Outlook For February 8

Upside trades – Two options for entry

• Positive retest of continuation level -2291.25( watch for sellers near 2294.5)
• Positive retest of support level– 2285.25 ( watch also for sellers near 2288.25)
• Opening targets ranges – 2288.25, 2294.25, 2297.25, 2299.5, 2301.75, 2303.5, 2306.75, 2309.75, 2313.5 and 2320

Downside trades – Two options for entry

• Failed retest of resistance level -2290.5
• Failed retest of support level– 2284.25
• Opening target ranges – 2287.75, 2284.5, 2283.25, 2279.75, 2276.25, 2274.25, 2272.25, 2269.5, 2264.5, 2260.5, 2256, 2253.5 and 2249.75

Nasdaq Futures

The NQ_F took its bullish trend and broke to new all time highs before retreating from these new highs for the second day running.  We hold higher lows which supports the continuing up trend.  Momentum is slightly divergent, but buyers have ignored this and hold steady into the march higher.   We have a double top under negative divergence this morning, suggesting a drift into support.  There is still a rising wedge in play.

Buying pressure will likely strengthen with a positive retest of 5188.25, while selling pressure will strengthen with a failed retest of 5167. Price resistance sits near 5188.25 to 5192.5, with 5195 and 5204 above that. Price support holds between 5167 and 5161.5, with 5157.5 and 5151 below that

Upside trades – Two options

• Positive retest of continuation level -5188.25
• Positive retest of support level– 5173.5
• Opening target ranges –   5178.75, 5183.5, 5188.25, 5192, 5195, and 5204.25

Downside trades- Two options

• Failed retest of resistance level -5187.5
• Failed retest of support level– 5173
• Opening target ranges –5182.25, 5178.75, 5173, 5167.25, 5161.5, 5157.25, 5154.5, 5151.5, 5145.5, 5140.5, 5137.5, 5133.25,  5128.5, 5123.75, 5119.75, 5113.25, 5106.5, and 5102.5

Crude Oil –WTI

West Texas Intermediate contracts continue to fade with more than a $3 difference from Brent.  Tis morning we wait on the EIA report, after the API yesterday afternoon did nothing to stop the slide into the target regions we noted in the trading room yesterday.  The level, 51.5 now looks like a price level that sellers will have to chip away at if they intend to break it down from there.

Buying pressure will likely strengthen with a positive retest of 52.66, while selling pressure will strengthen with a failed retest of 51.2.  Price resistance sits near 52.66 to 53.05, with 53.4 and 53.64 above that. Price support holds between 51.5 and 51.2, with 50.78 and 50.47 below that.

Upside trades – Two options

• Positive retest of continuation level -52.29
• Positive retest of support level– 51.59
• Opening target ranges –51.89, 52.21, 52.64, 52.86, 53.09, 53.34, 53.6, 53.86, 54.02, 54.19, 54.3, 54.51, 54.76, 55.02, 55.19, and 55.35

Downside trades- Two options

• Failed retest of resistance level -51.87
• Failed retest of support level– 51.5
• Opening target ranges – 51.72, 51.52, 51.22, 51.04, 50.82, 50.47, 50.3, and 50.16

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.