S&P 500 Futures Trading Outlook For October 27

Stock Market Futures Outlook for October 27, 2016 –

As suspected, the S&P 500 (INDEXSP:.INX) trading range continues to tighten. We are still somewhat at risk to sell off as long as we sit below 2144 on S&P 500 futures. That said, we are still trading well above the important line that everyone is watching – at 2120. Muted power from buyers and sellers will likely leave stock market futures range bound today. Strange inertia, but I suspect we all know it is likely due to the election ahead. Tight congestion pattern is present between 2133 and 2137. Price support holds near 2123-2126, and resistance sits at 2151-2154.

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

TODAY’S RANGE OF MOTION

S&P 500 Futures Trading Outlook Chart – October 27

Upside trades on S&P 500 futures – Favorable setups sit on the positive retest of 2134.75, or a positive retest of the bounce off 2131.5 with upward momentum. I use the 30min to 1hr chart for the breach and retest mechanic. Targets from 2131.5 are 2136.5, 2140.5, 2143.5, 2145.75, 2147.25, 2149.5, 2152, and 2156.5. As always, additional targets will be in the Members only portion of the morning blog.

Downside trades on S&P 500 futures – Favorable setups sit below the failed retest of 2130.5, or at the failed retest of 2136.5(watch for the higher low if this is attempted) with negative divergence. Retracements into lower levels from 2136.5 give us the targets of 2134, 2131.75, 2127.5, 2126.25, 2123.5, and 2120.25. Additional targets will be in the Members only portion of the morning blog, and in the live trading room.

Nasdaq Futures

The NQ_F held the support level of 4840, though it breached the point and quickly recovered and is bouncing into heavy congestion. New resistance areas are 4884 to 4894. Today’s support sits in the region between 4840 and 4848.

Upside trades on Nasdaq futures – Favorable setups sit on the positive retest of 4875.75, or a positive retest of 4857.75 with positive momentum. I use the 30min to 1hr chart for the breach and retest mechanic. Bounces might be big, but are likely to give way to selling in the current pattern. Targets from 4857.75 are 4862.25, 4866.25, 4871, 4875.5, 4879.25, 4882.5, 4887, 4889.75, 4894.25, 4898.25, 4902.25, 4907.5, 4912.25, and 4919.5. As always, additional targets will be in the Members only portion of the morning blog, and in the live trading room.

Downside trades on Nasdaq futures – Favorable setups sit below the failed retest of 4852.75 (needs negative momentum here for continuation), or at the failed retest of 4882 with negative divergence. Retracements into lower levels from 4882 are 4878.75, 4875, 4870.5, 4866.25, 4862.25, 4856.75, 4853, 4849, 4844.5 and 4840. See the blog for additional targets.

Crude Oil

EIA inventories reported a smaller than expected draw that lifted the chart, but it remains bogged. Our support level of 49 has been broken but quickly recovered. The sentiment continues as negative in the short term – so the battle to be won is at 49. Big spikes in either direction will likely drift back into the region between 49.4 and 52.42 for the week.

Trading ranges for crude oil have expanded- 48.11 to 52.42 in the current pattern.

Upside trades on crude oil can be staged on the positive retest of 49.52, or at a positive retest off 49.02 with positive momentum. I often use the 30min to 1hr chart for the breach and retest mechanic. Targets from 49.02 are 49.5, 49.74, 50.09, 50.4, 50.74, 50.96, 51.09, 51.36, 51.65, 51.82, 52.02, and 52.24 to 52.42. See the blog for more details on the chart action.

Downside trades on crude oil can be staged on the failed retest of 49, or at the failed retest of 50.02 with negative divergence. Targets from 50.02 are 49.86, 49.68, 49.61, 49.33, 49.11, 49.02, 48.69, and 48.34. Additional targets will be in the Members only portion of the morning blog, and in the live trading room.

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:  @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.