Friday’s Futures Setups

“Saving the best for last”… was the
theme for today on the S&P 500 futures. The S&Ps opened at where they
left off from yesterday’s very volatile session, then sold off and went into a
trading range with a head and shoulders top, a sign that the bears could come in
the afternoon and they did, even if it took them a while. At about 2:00 PM EST
the neckline on the Head and Shoulders and a key retracement point at 895 was
broken to the downside. This created a great opportunity for short sellers. The
(SPU2)
dropped 20 points from the neckline to the close at 875 down 30 points on the
day.

The Nasdaq 100 for September (NDU2)
sold off in similar fashion, and then made a head and shoulders pattern to close
at 997, a big drop from its 1010 neckline. The next support level is at 990.
Look for continued pressure tomorrow, as tomorrow is expiration date for equity
options.