Broad Market Outlook for Jan 25, 2018
The price action continues to be bullish as the major stock market indices made new highs yesterday and have held key price support. Holding major price support levels will be key again today, with failed supports bringing countertrend fades into view.
Note that you can access today’s economic calendar with a full rundown of releases.
S&P 500 Futures
Yesterday’s commentary is exactly what we need to watch for today, noting that fades can be deep and feel like reversal except for those value buyers who continue to come to the rescue. Support watch is most important to consider in spaces like this – mixed momentum. Buying breakouts will stretch our risk thresholds. The bullets below represent the likely shift of trading momentum at the positive or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 2850.75
- Selling pressure intraday will likely strengthen with a failed retest of 2835.75
- Resistance sits near 2850 to 2855.75, with 2859.25 and 2872.5 above that.
- Support holds between 2836.25 and 2829.25, with 2822.25 and 2812.75 below that.
NASDAQ Futures
The NQ_F also tests new highs breaching the target near 7000 followed by a steep fade – suggesting that many traders had this as both a target to leave longs and to engage in shorting behavior to break our deepest support area listed yesterday before recovering. Breaching 6978 will be important for buyers to gather steam but below there, sellers have a chance to push us back down. The bullets below represent the likely shift of intraday trading momentum at the positive or failed tests at the levels noted.
- Buying pressure intraday will likely strengthen with a positive retest of 6978.75
- Selling pressure intraday will likely strengthen with a failed retest of 6947.5
- Resistance sits near 6989.25 to 6995.25 with 7004.5 and 7022.5 above that.
- Support holds near 6949.75 and 6927.75, with 6907.25 and 6852.25 below that.
WTI Crude Oil
Buying pressure forced WTI prices into areas not seen in years as the dollar falls and demand builds. We’ve stalled out a bit so I suspect the support region of importance today will be near 65.8. 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 66.56
- Selling pressure intraday will strengthen with a failed retest of 65.78
- Resistance sits near 66.4 to 66.7, with 67.04 and 67.46 above that.
- Support holds near 65.8 to 64.87, with 64.56 and 64.35 below that.
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.
