Looking Ahead, Here’s What I See
Premarket futures are slightly red as we turn
the corner towards open of cash market trading. Following yesterday’s
micro-range sessions, potential does exist for a directional spike or break any
time between the trading bells today.
ES (+$50 per index point)
S&P 500 held inside a 5pt total range for 6.5
market hours. An occurrence we’ve seen more than a few times past the death of
market volatility since 2003.
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Price action remained below 38% of the recent
hi-lo swing and that grid remains valid in bias again today. 1215+ is initial
resistance, 1219.50 last line in the sand for sellers. 1220+ is the bull’s
domain if broken on a candle closing basis.
NQ (+$20 per index point)
Nasdaq 100 staged a nine point total range, not
even $200 per contract. Is the tech sector supposed to be a hot money index?
Someone forgot to ring the opening bell for this one yesterday.
Wednesday’s session grid still remains in play.
38% is initial resistance, above 62% marks bullish breakout potential.
YM (+$5 per index point)
Dow Industrial futures likewise wound its way
well inside a sub-$200 per contract coil. Overhead grid continues to be valid
today.
ER (+$100 per index point)
Russell 2000 futures were much more dynamic
than other three as usual, which is not really saying much. Just about a 5pt
($500 per contract) total range, most of which was contained between 38% and 62%
of Wednesday’s hi-lo range.
We can add a grid from Thursday’s lo to hi and
determine that 655.60 is critical support today. Trading below that mark or
above 659.60 has potential to continue if a directional move breaks out.
{Price levels posted in charts above are
compiled from a number of different measurements. Over the course of time we
will see these varying levels magnetize = repel price action consistently}
Looking Ahead
Next week includes month-end sessions, Fed governor meetings in
Jackson WY and a long holiday weekend to come. Waning volume and increasing
intraday gyrations could be the result. Please join us in the free market
outlook newsletter posted online Sunday evening at 5:00pm EST inside our public
website www.CoiledMarkets.com
Have a great weekend, and see you soon!
Trade To Win
Austin P
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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.