Do you buy pullbacks? Here are the 3 levels to watch today
Federal relief
was credited with Monday’s reluctant rally. Price action was choppy
early, perhaps due to option expiry settlement of assigned stocks and new spread
positions opened. After that, markets lumbered sideways on relatively low volume
before catching bids in the final hour to close right at = above some key
resistance points. Interesting to see where this session takes the markets next.
S&P 500 traded into layers of resistance
yesterday, breaking above 1197+ at the 38% of recent hi-lo swing. The 1205 level
has been widely watched as a zone of high resistance, and it remains a potential
turning point for today.
ES (+$50 per index point)
ER (+$100 per index point)
Russell 2000 has 647 as comparable resistance
to ES 1205 level depicted above. Half of the recent decline has been recaptured
as of yesterday, swinging the fulcrum to neutral for bull-bear market bias.
This Session:
ES (+$50 per index point)
Yesterday’s early gyration in the S&P led to a
midday consolidation that coiled sideways for hours before bumping upward into
the close. Today’s initial support near 1195 and last line of support near 1190
may mark session lows if uptrend from Friday continues.
ER (+$100 per index point)
Russell 2000 also swung around in somewhat
volatile fashion thru 11:30am before coiling up to break higher by 4:15pm EST.
643 and then 639.50 are the first & last zones of support on any pull backs that
hold and reverse higher today.
Summation
The past several sessions have done nothing but swung price action
sideways in very volatile fashion. Option expiry is gone, the FOMC meeting is
ahead and a couple of econ reports remain in between. Earnings are on the
backside of complete, with more reported than not. Price action will be forced
to move on its own merit, which should be solid intraday ranges and more
deliberate movement as witnessed yesterday than wild swings of the recent past.
The first test of some big resistance levels began at yesterday’s close and
continues into the session today. No bias exists for intraday traders: follow
the method signals and law or large numbers will take care of you!
Trade To Win
Austin P
(free pivot point calculator, much more inside)
Austin Passamonte is a
full-time professional trader who specializes in E-mini stock index futures,
equity options and commodity markets.
Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.