The Cash S&P Action
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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 2.30 points higher and the bond market is trading up 1 tick.
Today, the cash S&P [$SPX.X>$SPX.X] hit new all-time highs (a), but reversed to close poorly (b). This is not the type of action you would expect at new highs. Therefore, you might want to watch the December S&P futures [SPZ9>SPZ9] for possible shorting opportunity. Just wait for some confirmation to the downside as they are currently trading higher in Globex after hours trading.
January Soybeans [SF0>SF0], on the Pullbacks Off Lows and Implosion 5 Lists, closed poorly and looks poised to continue its downtrend. Look for a shorting opportunity here.
December Wheat [WZ9>WZ9], mentioned last night and on the Pullbacks off Lows List, sold off and closed poorly today. This suggests that it may have resumed its downtrend. December Corn [CZ9>CZ9] is a similar pattern. Look for shorting opportunities here.
December Bonds [USZ9>USZ9], mentioned last night (see archive for details), sold off today and closed poorly. This suggests that breakout players may still be exiting the market. Continue to look for a shorting opportunity here.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!