S&P 500 Futures Trading Update: All Eyes On Support

Broad Stock Market Outlook for February 2, 2018

The major stock market indices are testing lower levels once more today after failing to hold support on a retest.

We are currently in the midst of the short cycle. Lower price support regions will be tested following yesterday’s failed retest of 2625 on S&P 500 futures. Look for more seeing more in the morning.

S&P 500 Futures

Early morning bounces today into resistance near 2816 is in process. Now lower resistance sits near 2825. Watch that resistance – if buyers can’t breach and hold, we have another drift down into the early morning lows and a new test near 2794. 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 with a positive retest of 2815.75
• Selling pressure intraday will likely strengthen with a failed retest of 2801
• Resistance sits near 2812.75 to 2824.75, with 2831.25 and 2837.5 above that.
• Support sits between 2801 and 2797, with 2794.25 and 2791.75 below that.

WTI Crude Oil (CL)

Traders sit range bound in familiar zones as they hold price above 64 and below 66 in general.  There is clear price acceptance in this region with 65.6 looking like a pivot area.  Trading remains choppy wi5out resolution.

• Buying pressure intraday will likely strengthen with a positive retest of 65.87
• Selling pressure intraday will strengthen with a failed retest of 65.24
• Resistance sits near 65.74 to 65.97, with 66.24 and 66.54 above that.
• Support holds near 65.43 to 65.06, with 64.48 and 63.87 below that.

Organized selling here and we have been on track to see the continuation. Think through your trades.

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.