SPM9 Stalled Out At All-Time Highs
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Futures and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published , the S&P Globex Futures are trading 1.20 points lower and the Bond Market Futures are unchanged.
The June S&P Futures [SPM9>SPM9] stalled out at all time highs today to form a Potential Turtle Soup Plus One sell set-up. This combined with the fact that we have three Market Bias signals pointed lower may make it an interesting candidate on the short side, especially if it can take out today’s low (1320.50).
On the Pullbacks Off Highs List, May Wheat [WK9>WK9], mentioned last night, still looks like an interesting buy, especially if it can take out yesterday’s high (281 1/2).
Last night, I mentioned that the June Swiss Franc [SFM9>SFM9] looked like an interesting Turtle Soup Plus One buy candidate after hitting major new lows but failing to hold there. Referring to the chart below, notice that today it rallied sharply from these lows (A). When you see major new lows (i.e. 50 days) that fail to hold, it may have breakout players trapped on the wrong side of the market. Therefore, look to play the opposite side.
Source: Omega Research.
May Silver [SIK9>SIK9], on the New 10 Day Lows List, hit new 20 and 50 day lows today but recovered and closed well. This may have the shorts trapped on the wrong side of the market. Look for a possible buying opportunity here.
Best of luck with your trading on Wednesday!
Dave Landry
Director of Research
TradingMarkets.com