S&P 500 Futures Trading Outlook For May 8

Stock Market Futures Trading Considerations For May 8, 2017

Cheap risk on Friday telegraphed the sentiment that elections would go well for Macron in France, and here we are.  Some profit taking should be on the horizon but the S&P 500 (INDEXSP:.INX) and broader market indices are positive and tests of price support will likely bring buyers into the fray.

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)

Momentum is still mixed but is bullish overall.  The bullets below represent the likely shift of trading momentum at the positive or failed tests at the levels noted – Levels near 2389 and 2396.75 are key battleground zones today.

• Buying pressure intraday will likely strengthen above a positive retest of 2397.5
• Selling pressure intraday will likely strengthen with a failed retest of 2389
• Resistance sits near 2397.5 to 2400.5, with 2403.75 and 2411 above that
• Support holds between 2389 and 2383.75, with 2380.5 and 2377.75 below that

NASDAQ Futures

Wedge building under neutral to positive momentum, but still favors buyers at value areas of support.  Our ranges continue to tighten with higher lows and higher highs.  The bullets below represent the likely shift of trading momentum at the positive or failed tests at the levels noted.

• Buying pressure intraday will likely strengthen with a positive retest of 5649.5
• Selling pressure intraday will likely strengthen with a failed retest of 5634.5
• Resistance sits near 5649.5 to 5660.25, with 5672.25 and 5680.5 above that
• Support holds between 5634 and 5628.25, with 5620.75 and 5609.5 below that

Crude Oil –WTI

Oil bounced at key support in the face of funds continuing to short.  This is a relief bounce that should retest the lows over the week as funds increase short positions.  The levels near 45.49 to 45.23 are now the spaces to hold if buyers put up a fight.  I suspect if we breach and hold 46.98, we will likely squeeze into the initial breakdown of near 47.3 to 47.6.  The bullets below represent the likely shift of trading momentum at the positive or failed tests at the levels noted.

• Buying pressure intraday will likely strengthen with a positive retest of 46.98
• Selling pressure intraday will strengthen with a failed retest of 45.94
• Resistance sits near 46.56 to 46.98, with 47.3 and 47.64 above that.
• Support holds between 45.49 and 45.26, with 44.83 and 44.2 below that.

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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.