S&P 500 Futures Trading Outlook For June 6, 2017

Stock Market Futures Trading Considerations for June 6, 2017

Divergences gave way to subdued selling during the overnight session for the S&P 500 (INDEXSP:.INX). Traders are looking forward with uncertainty over international news of interest. Gold continues to climb and may hold 1297 to 1308 if the buyers hold the power they currently have.

Check out today’s economic calendar with a full rundown of releases.  And note that the charts below are from our premium service at The Trading Book and are shared exclusively with See It Market readers.

S&P 500 Futures (ES)

The key event formation will be lower highs and a breach below key price support to signal any bearish action presented itself on tighter time frames but value areas near 2426 should bring buyers out to battle.  A failed retest of 2431 to 2434 will signal more pullback on the horizon.  Use caution trading short on the lows of the candles – you are likely to incur higher levels of risk this way.   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 above a positive retest of 2437.5 (though that is resistance for now)
• Selling pressure intraday will likely strengthen with a failed retest of 2426.5
• Resistance sits near 2437.5 to 2439.75, with 2441.5 and 2447.75 above that.
• Support holds between 2431.75 and 2426.5, with 2423.25 and 2413.75 below that.

NASDAQ Futures (NQ)

New highs again yesterday, but sharp selling at the high test. The key support region near 5878.5 has been tested and has failed – buyers now hold steady near 5864.5.  Chart formations still suggest that buyers will take advantage of deeper support tests, but we do continue to weaken a bit.  The levels to watch for support today seem to be 5864 to 5844, in a retrace of the big motion we saw on Friday.  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 5880.5
• Selling pressure intraday will likely strengthen with a failed retest of 5864
• Resistance sits near 5882.5 to 5891.25, with 5906.75 and 5926.75 above that.
• Support holds between 5864.25 and 5853.5, with 5844 and 5824.25 below that.

WTI Crude Oil

There is a battle to hold 47 as support currently and sides seem evenly matched here for now – suggesting a range of trading until the API report after the close. The level at 48.89 is still the level the buyers need to recapture but they could begin a more concerted effort if they can breach and hold 47.76.  Momentum is decidedly negative but showing some divergence.  The level near 47 will be critical today as key lower support as a break there could send us to 45.94.  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 47.76
• Selling pressure intraday will strengthen with a failed retest of 47.05
• Resistance sits near 48.04 to 48.44, with 48.89 and 49.42 above that.
• Support holds between 47.05 and 46.78, with 46.4 and 45.94 below that.

Our live trading room 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.