The Futures In Five: Use Caution With Trading “Size”

The S&P 500 Index trading spread expiring tomorrow has widened slightly after the big intraday move yesterday to around 20 points at the 2800 strike.

This leaves us 2820-2780 as the edges and trading range to watch for expansion or reversal.

Note yesterday, I mentioned the divergent momentum creating environments that open the arena for larger than expected spikes up or down.

This condition remains today. As with yesterday, don’t get in front of shorts until you have technical confirmation – and that means look for failed bounces at resistance that hold negative pressure

From yesterday: “Eventually, these bounces will give into lower tests of deeper support as we have very unusual price expansions that will give ‘reversion to the mean’ traders a great deal of fuel with which to work.” 

This is the likely reason we are going to see this kind of behavior again.  Markets are very messy and are quite volatile.  Please use caution with size.

Stock Market Futures Update – March 5, 2019

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.