S&P 500 Futures Trading Outlook For March 31

Stock Market Futures Trading Overview For March 31, 2017

Stocks retreated a bit from yesterday’s highs. The S&P 500 (INDEXSP:.INX) is looking to test key support areas – this may hold the key for the broad index.

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)

Key support tests will be important today around 2350.  As expected yesterday, we tested our 2366 regions and faded.  Momentum is not strong enough to hold the tests of new highs on the day.  Bounces will likely give us areas to short but we do still have a chance to test 2368 before this cycle is over.  Cautious trading is suggested as we are range bound, and testing higher but without the necessary conviction to hold price.

Key Trading Insights & Price Levels

• Buying pressure will likely strengthen above a positive retest of 2366.5 (but more resistance is ahead nearby)
• Selling pressure will likely strengthen with a failed retest of 2348
• Resistance sits near 2362.5 to 2366.5, with 2369.5 and 2372.25 above that
• Support holds between 2348.5 and 2342.5, with 2338.5 and 2330.5 below that

Here’s the economic calendar for a rundown of today’s releases

NASDAQ Futures

Momentum holds steady for a third day as buyers hold higher lows for now.  New support levels to watch are in the 5420 region and again, range expansions should not hold new highs under the current market strength.  This means that you use great caution going long at the upper edge of the ranges.  Note the levels on the chart for price bounds.

Key Trading Insights & Price Levels

• Buying pressure will likely strengthen with a positive retest of 5442.5 (use caution-wait for a retest)
• Selling pressure will likely strengthen with a failed retest of 5417.75
• Resistance sits near 5442.5 to 5452, with 5462.5 and 5473.5 above that
• Support holds between 5420.75 and 5404.25, with 5388.5 and 5347.5 below that

Crude Oil –WTI

Oil tested 50.05 as we expected and buyers are struggling to hold it above these levels.  There are certainly competing interests here as hedge funds are likely battling each other for any strength of direction.  There is still a battle raging to squeeze the contango gap between Brent crude and WTI as we watch WTI rise into this as well.  Today, I’ll be watching to see the shift and of course looking forward the reports showing where the hedge funds have shifted their positions. I see us potentially set to fade into higher support so I will be cautious on the approach long, waiting for the test of support before engaging in order to limit risk exposure.

Key Trading Insights & Price Levels

• Buying pressure will likely strengthen with a positive retest of 50.48
• Selling pressure will strengthen with a failed retest of 49.2
• Resistance sits near 50.35 to 50.84, with 51.22 and 51.7 above that.
• Support holds between 49.2 and 48.84, with 48.19 and 47.84 below that.

If you’re interested in watching these trades go live, join us in the live trading room from 9am to 11:30am each trading day. Visit TheTradingBook for more information.

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.