A recent price compression signal warned us about a potential change in motion in the stock market.
And that has now given way to whipsaw price action, with the S&P 500 stretching higher then back lower into support levels familiar to us.
The exhaustion pattern (a breakout that stalls and reverses) is playing out BUT with strong buyers in the mix.
So the next few days will be important.
We will likely see a bounce off higher support areas near 2771 or so. Pullbacks remain buying zones from an intraday perspective at the first pass… but be on the lookout for lower highs (which would be bearish).
The S&P 500 spread expiring tomorrow is around 21 points at the 2780 strike leaving us a trading range of 2759-2801. Stock market volatility is compressing once more. Watch these edges, especially the 2760 area (should be get there).
Stock Market Futures Update – February 21, 2019
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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.
