Broad Stock Market Futures Outlook for May 7, 2018
Friday’s rally is continuing into Monday morning. We are on the hunt for resistance in the broad stock indices. Though still in very broad congestion, pullbacks should find buyers.
That said, pullbacks could be significant as the move upward has been swift. Swift motion does not have as much staying power as congested motion (think about the difference between the sprinter and the long distance runner here). Caution here as both sides of the trade could have strength intraday today.
S&P 500 Futures
Familiar resistance sits near 2674 and holding above this level today is likely to bring a new group of buyers to the party. The line in the sand seems to be near our 2660 level. The bullets below represent the likely shift of trading momentum at the successful or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen with a bullish retest of 2675.25
- Selling pressure intraday will likely strengthen with a bearish retest of 2664.5
- Resistance sits near 2674.75 to 2678.75, with 2684.25 and 2692.75 above that
- Support sits between 2669.75 and 2658.75, with 2647.5 and 2636.50
NASDAQ Futures
Another stall at familiar congestion sits near 6823 – as we are on the hunt for resistance, our bounces should appear on the pullbacks here as we position above key support near 6774. Range expansion was expected and it delivered. The first dip below will likely bounce as before but watching for exhaustion with fast moves like this one is advised. The bullets below represent the likely shift of trading momentum at the successful or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen with a bullish retest of 6832.75
- Selling pressure intraday will likely strengthen with a bearish retest of 6774.50
- Resistance sits near 6824.5 to 6865.5 with 6904.25 and 6930.5 above that.
- Support sits between 6794.5 and 6776.5, with 6732.5 and 6654.5 below that.
WTI Crude Oil
CL_F – Buyers have continued the press forward as expected, particularly after the breach of 69.13 which will now hold today as a key support level. Big bounces upward should fade at the first pass, but higher lows are likely until we test 73.2. We will need to keep an eye on support levels to hold for the charts to actually break through to this upside target. The bullets below represent the likely shift of trading momentum at the successful or failed retests at the levels noted.
- Buying pressure intraday will likely strengthen with a bullish retest of 70.59
- Selling pressure intraday will strengthen with a bearish retest of 69.57
- Resistance sits near 70.24 to 70.87, with 71.8 and 72.2 above that.
- Support holds near 70.09 to 69.68, with 69.13 and 68.8 below that.
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.
