Stock Market Trading Considerations For April 21, 2017
Renewed hope in the tax plan and a strong showing from corporate earnings (75% of the reporting companies beating expectations) created an environment that allowed the S&P 500 (INDEXSP:.INX) to bounce into higher resistance. But how sustainable is this rally? Read more below.
Check out today’s economic calendar with a full rundown of releases. And note that the charts below are from our premium service at The Trading Book and are shared exclusively with See It Market readers.
S&P 500 Futures (ES_F)
ES_F to bounce into major resistance near 2357.5. This area will be a key resolution space today. A breach and hold above will push buyers back into 2375-2377 or so. Below that, we’ll be caught in the range of the greatest congestion. Buyers continue to keep support higher. The levels near 2346-2351 will now be support. A break and hold of this level will shift the balance of motion back to the sellers.   Gold, the 30-year treasury bonds and the VIX are all higher in general but have stalled out a bit. They still holding bullish formations.
- Buying pressure intraday will likely strengthen above a positive retest of 2357.5 ( careful here as sellers will try to push them down)
- Selling pressure intraday will likely strengthen with a failed retest of 2351
- Resistance sits near 2357.5Â to 2361.5, with 2365.5 and 2373.5 above that
- Support holds between 2342.5 and 2338.5, with 2322.5 and 2317.5 below that
NASDAQ Futures (NQ_F)
Traders continue to hold the Nasdaq (INDEXNASDAQ:.IXIC) with higher lows and higher highs over the last few days, and are poised to continue higher. Pullbacks will find buying support as long as we hold 5440, and on a larger time frame, we see deeper support still holding firm at 5412.75. A break and failed retest below the 5400 area, sellers will resume power. A potential rising wedge is in play – intraday momentum is bullish at this time.
- Buying pressure intraday will likely strengthen with a positive retest of 5456.5 (use caution as sellers sit near 5464)
- Selling pressure will likely strengthen with a failed retest of 5422.5
- Resistance sits near 5456.5 to 5461.75, with 5464.5 and 5478.5 above that
- Support holds between 5421.5 and 5400.25, with 5390.5 and 5362.25 below that
Crude Oil –WTI (CL_F)
Oil continued to fade yesterday and this morning momentum remains negative, suggesting that bounces are likely to find sellers, particularly below 51.48. New support levels hold between 50.50 and 50.60. A failure to hold these levels sends us to the 50 region as a test of the round psychological level. If traders hold the balance here, we’ll still need to see momentum shift to assume buying action will prevail.
- Buying pressure intraday will likely strengthen with a positive retest of 51.48
- Selling pressure intraday will strengthen with a failed retest of 50.5
- Resistance sits near 51.78 to 52.12, with 52.68 and 53.3 above that.
- Support holds between 50.5 and 50.27, with 50.04 and 49.36 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.
Our live trading room 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:Â Â @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.
