Stock Market Futures Considerations For May 5, 2017
Non-farm payroll gave the S&P 500 (INDEXSP:.INX) a brief bump but we’ll see how it plays into the day. For the week, we continue to be squeezed into tighter ranges. My thought is that the reaction to non-farm payroll is somewhat muted (until next month).
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)
Momentum is still mixed but is bullish overall. Price action is still very congested and large moves should be retraced, at least, in part if not the entire move back into congestion. The bullets below represent the likely shift of trading momentum at the positive or failed tests at the levels noted – Levels near 2387 and 2380 are key battleground zones today.
- Buying pressure intraday will likely strengthen above a positive retest of 2388.5
- Selling pressure intraday will likely strengthen with a failed retest of 2383.5
- Resistance sits near 2390.5 to 2392.5, with 2394.5 and 2411 above that
- Support holds between 2380.5 and 2377.75, with 2375.5 and 2365.5 below that
NASDAQ Futures (NQ)
Wedge building under neutral to positive momentum, but still favors buyers at value areas of support. The trading range for the Nasdaq (INDEXNASDAQ:.IXIC) continues to tighten so a big move that is likely to partially retrace is on the horizon. 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 5634.5 (careful here as it is a pattern completion or could be a double top)
- Selling pressure intraday will likely strengthen with a failed retest of 5619 ( higher lows are showing)
- Resistance sits near 5635.5 to 5642, with 5650.5 and 5662.25 above that
- Support holds between 5619 and 5607.5, with 5597.75 and 5587.5 below that
Crude Oil –WTI
Oil took a massive tumble into deep monthly support near 43.79 noted on the charts yesterday. It recovered just as sharply overnight and trying to hold the level of support at 45.26. I suspect if we breach and hold 45.91, we will likely squeeze into the initial breakdown of near 47.3. 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 45.92
- Selling pressure intraday will strengthen with a failed retest of 45.26
- Resistance sits near 46.18 to 46.55, with 46.84 and 47.3 above that.
- Support holds between 44.1 and 43.79, with 43.42 and 43.04 below that.
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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.
