December 28 Stock Market Futures Outlook –Â
The S&P 500 (INDEXSP:.INX) continues to slowly grind higher. The push to upper price resistance continues for the major market indices. We now look to 2269.75 as the test for S&P 500 futures, with 2272.50 above that. Pullbacks to price support are still likely to be bought as support is showing higher lows in general. Again, use caution buying breakouts as price action does not show this as capable of holding without a test of higher support below.
The lines in the sand for buyers to hold will be 2257-2260. Below that, we see 2254.50 and 2250.50. Charts will be weighted to the buyers as long as we hold 2260.
See today’s economic calendar with a rundown of releases.
TODAY’S RANGE OF MOTION
E-mini S&P 500 Futures Trading Chart For December 28
Upside trades – Two options for entry–
Positive retest of continuation level – 2263.5 (careful here – a retest is required)
Positive retest of support level – 2261.25
Opening targets ranges – 2263.5, 2266.5, 2269.25, 2271.25, 2272.75, 2275.50, 2278.25 and 2282.50
Downside trades – Two options for entry–
Failed retest of resistance level – 2260 (needs retest confirmation- short action a bit countertrend intraday)
Failed retest of support level – 2257 (watch for the higher low that may present)
Opening target ranges – 2257.75, 2254.5, 2251.5, 2249.50, 2246.50, 2242.75, 2238.75, 2234.75, 2231.50, 2227.75, 2224.25, and 2224.25
Nasdaq Futures
The NQ_F breached a resistance level and drove to new highs yesterday before fading to higher lows once more. Momentum is positive in general. The breakout range we are watching in the room shows 4965 as support and 4985 to 4994.50 as resistance. Secondary support is 4959.
Upside trades – Two options
Positive retest of continuation level – 4976.75 (needs confirmation)
Positive retest of support level – 4966.25 (also needs confirmation)
Opening target ranges – 4973.25, 4978.5, 4988.25, 4994, 4997, and 5002.25
Downside trades- Two options
Failed retest of resistance level – 4976 (careful here – negative divergence needs to be present)
Failed retest of support level – 4964 (watch for support bounces as the lows continue to be higher)
Opening target ranges – 4973.25, 4966.5, 4959.25, 4952.75, 4948, 4943.5, 4936.5, 4931.50, 4927.75, 4923.75, 4917.75, 4914.25, 4907.50, 4902.75
Oil –WTI Crude
The oil contract expiring in February broke through a wedge yesterday and found new resistance near 54.3 this morning before collapsing into support near 53.6. Momentum is mixed but a positive retest of 53.37 is a bullish sign for the chart. Buyers will hold the strength of motion as long as we hold the support test there.
Upside trades – Two options
Positive retest of continuation level – 53.97 (needs a retest)
Positive retest of support level – 53.37
Opening target ranges – 53.64, 53.8, 53.94, 54.04, 54.27, 54.45, 54.77, 54.9, and 55.4
Downside trades- Two options
Failed retest of resistance level – 53.9
Failed retest of support level – 53.6 (needs a failed retest)
Opening target ranges – 53.7, 53.37, 53.2, 53.03, 52.81, 52.64, 52.32, 52.09, 51.85, 51.57, 51.32, 51.08, 50.27, 50.13, 49.87, 49.6, 49.27, 49.05, and 48.92
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:Â Â @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.
