Map out today’s trading with these 2 charts
Friday’s emini session was one of
wandering price action. Indexes traded lower off the bell, gyrated sideways in
rather buzzy fashion and finished the day with a modest little upward squeeze at
the end. All in all, it was a “nothing” day in a rather erratic week.
Last Monday’s end-month session was a gap up &
sideways affair that sold off real hard in the closing minutes of trading.
Tuesday’s FOMC event was nothing more than sideways noise. Wednesday was a gap &
go that ground straight upward in the ER and perfectly sideways in the ES past
noon. Thursday and Friday punctuated the (in)action with rather serpentine paths
from west to east across the chart.
That type of volatile indecisiveness led to
higher price levels on a weekly basis, accomplished entirely inside Wednesday’s
single session ramp. Might we see more directional, methodical behavior in the
current week ahead?
ES (+$50 per index point)
S&P 500 spent the past two sessions stuck near
channel trendline resistance. Next upside target appears to be 1240 near late
September highs, while a trip back down the channel toward 1200 is always
possible as well. Taking out or failing at last weeks high near 1230 may be key
to today’s and this week’s directional bias.
ER (+$100 per index point)
Russell 2000 likewise held channel resistance
on its past two attempts to break out. 680ish would be next visible sticking
point… 630s downside support for any southbound trips in this chart.
Summation
There really isn’t much to opine about recent price action and how it
might affect the near-term future. Last week consisted of four messy sessions
and one straight-trend move. Not really the stuff methodical moves are made of.
As usual, we will take the intraday signals as they come, cut the losers short
and let the runners run.
Have a prosperous trading day!
Trade To Win
Austin P
(Weekend Outlook trend-view section…
open access)
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.