S&P 500 Futures Rise As Bulls Try To Make A Stand

Buyers took advantage of the test of lower levels near 2025, and the ensuing rally higher has pushed S&P 500 futures into resistance sitting near 2049.75.

Key price levels to watch today are 2052.5 as initial resistance and 2040 as initial support. I expect selling trying to hold us from advancing through 2052.5, but a positive retest there could give us 2061.5. On the flip side a failed retest of 2040 could give us 2036.

Momentum on the four hour S&P 500 futures chart is still neutral to negative; we are sitting at congestion once more. Buyers continue to save the day. In range bound environments, it is best to trade level to level intraday. We are seeing this across stock market futures of late.

Shorter time frame momentum indicators are positive, but rolling over into congestion here at 2048- almost the same area as yesterday at this time. Congestion sits between 2036 and 2048.

See today’s economic calendar with a rundown of releases.

THE RANGE OF THURSDAY’S MOTION

Crude Oil Futures (CL_F)

Outlook for April 8 for crude oil futures – With the OPEC meeting ahead, traders appear to be anticipating positive outcomes as we continue to bounce after the pullback. Support zone near 37.5 that was broken yesterday was recaptured in the afternoon and still holds as a primary level of interest.

Today, the crude oil trading ranges are between 36.6 and 38.54.

Moving averages in oil are mixed on tighter time frames, but we are moving up from an importance support area near 38.43 and bullish formations hold, in general. Charts are muddy here so sideways action is natural (referring to current retracement of the dip yesterday). Bullish action still prevails.

Intraday long trading setups on crude oil futures suggest a long off a 38.7 positive retest (check momentum here), or 38.3 positive retest on the pullback into targets of 38.68, 38.9, 39.2, 39.33, 39.55 and if buyers hold on, we’ll see 39.87 to 40.19.

Intraday short trading setups suggest a short below a 38.43 failed retest, or the failed retest of 39.07 (with negative momentum prevailing) sends us back through targets at 38.3, 38.04, 37.79, 37.56, 37.24, 37.07, 36.94, 36.68, and 36.19 to 35.87, if sellers hang on.

E-mini S&P 500 Futures  (ES_F)  

Below is a S&P 500 futures chart with price support and resistance trading levels for today. Click to enlarge.

The Outlook for April 8 for S&P 500 Futures  – The price levels between 2052.5- 2061.5 now serve as front line resistance, and front line support sits near 2034.5- 2030.5 region. Expansions outside these ranges should retest nearby before continuation.

Upside motion has the best setup on the positive retest of 2040.5 or a breach and retest of 2049.5 with positive momentum. I use the 30min to 1hr chart for the breach and retest mechanic. S&P 500 futures targets from 2040.5 are 2042.25, 2044.5, 2047.5, 2049.5, 2051.25, 2054.5, 2057.5, and if we can catch a bid there, we could expand into 2061.5, 2064.25, and 2067.5. Long action is still trending over the bigger picture for now, but momentum is still drifting.

Downside motion opens below the failed retest of 2040.5 or at the failed retest of 2052.5 with negative divergence (careful here- watch for the higher low to develop to tell you that an early exit might be necessary). Retracement into lower levels from 2052.5 gives us the targets 2049.5, 2047.75, 2044.75, 2040.50, 2037.75, 2035.75, 2032.75, 2029.5, and perhaps 2026.5 to 2022.5, if selling really takes hold again. Buyers should still come to the rescue at the deep support.

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 traders remain 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.

Thanks for reading.

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.