Market Futures Trading Outlook For January 23

Broad Market Outlook for January 23, 2018 

The bullish price action is extending as short positions are squeezed. Keep an eye on price support levels noted below – holds for entries and failures for countertrend fades. Below are key futures levels and commentary for the S&P 500, Nasdaq, and crude oil.

Note that you can access today’s economic calendar with a full rundown of releases.

S&P 500 Futures

New highs after deal to end government shutdown brings us into pivot targets near 2844, well above target regions for the day.  Higher support to watch today is 2826.  Short trades continue to be swift and extremely countertrend – long trades at pullbacks remain the best course of action. 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 2835.75
• Selling pressure intraday will likely strengthen with a failed retest of 2821.75
• Resistance sits near 2835.5 to 2842, with 2844.25 and 2858.5 above that.
• Support holds between 2826.25 and 2821.25, with 2815 and 2810.75 below that.

NASDAQ Futures

The NQ_F holds strong and like the others brings new highs to the fore.   Support watch remains important in this formation, so we need to keep an eye on higher regions near 6919.75.  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 6958.75
• Selling pressure intraday will likely strengthen with a failed retest of 6919.25
• Resistance sits near 6958.25 to 6980.25 with 7000.5 and 7019.5 above that.
• Support holds near 6919.75 and 6896.75, with 6872.5 and 6862.25 below that.

WTI Crude Oil

Oil remains landlocked between 62.7 and 64.35.  The region to watch today will be near 63.57 as losing this area will send us to 63 and then potentially 62.72. Momentum continues slightly bearish but buying pressure continues to build beneath. 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 64.06
• Selling pressure intraday will strengthen with a failed retest of 63.57
• Resistance sits near 63.6 to 63.94, with 64.3 and 65.14 above that
• Support holds near 63.67 to 63.25, with 62.74 and 62.27 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.