U.S. Equities Trading Update: Plunge Slowed By Deep Price Support

Midday – Broad Stock Market Outlook for February 9, 2018

Charts struggle in a negative feedback loop exacerbated by news and media and fear.  We are looking at new lows being tested across the equities indices…

Bounces here will be critical to watch. Though support levels may fail, it is highly likely that we bounce from the lows coming into the afternoon. Follow the trend and don’t anticipate reversals until prices stop their directional motion.

S&P 500 Futures

Buyers have little power or control over the current motion downward as we step into the lows of Monday.  Resistance watches are the name of the game when slopes are negative, and until we shift this formation, we will be in sell zones.  Don’t anticipate bounces when all the slopes of moving averages are negative- you are looking for the outliers…..and not the best way to make money consistently. 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 2580.75
• Selling pressure intraday will likely strengthen with a failed retest of 2529
• Resistance sits near 2554.75 to 2571.5, with 2577.25 and 2619.5 above that
• Support sits between 2534.5 and 2517.75, with 2507.25 and 2478.5 below that

NASDAQ Futures

New lows in the NQ_F signal trouble with buying pressure taking hold.  Watch the region around 6195 to hold if we plan any kind of bounce event that buyers will win.  Don’t wait for the reversal spaces here, but instead follow the trend and look for the break of trend to get out of the trade.  The bullets below represent the likely shift of intraday trading momentum at the positive or failed tests at the levels noted.

• Buying pressure intraday will likely strengthen with a positive retest of 6259.5
• Selling pressure intraday will likely strengthen with a failed retest of 6190.5
• Resistance sits near 6239.5 to 6259.25 with 6328.5 and 6378.5 above that.
• Support sits between 6164.25 and 6135.5, with 6040.75 and 5998.75.25 below that.

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.