Trading can be simple as this…
followed suit for a third day straight after last Tuesday’s volume
decline. Drifty and directionless most of the day, upward bias in the end. Most
indexes seem unable to go much higher but refuse to go lower as well. That type
of rangebound inaction should abate inside this week, for at least a brief
period of time.
S&P 500 futures opened at pivot resistance,
dropped right to S1, sprung back up to R1, dribbled downward to S1 again before
popping to stick near the pivot point by day’s end. Nothing more than technical
levels being bought & sold without any real accumulation ~ distribution taking
place. Can’t push higher, refuse to drop lower for now.
ES (+$50 per index point)
(+$100 per index point)
Russell 2000 futures had an upward bias most of
the day. From pivot tap to R2 extension, price action fluttered downward as the
ES led lower before small caps enjoyed another late-day lovefest with buyers.
Closed again at new highs right into the final print at 4:15pm EST.
Clearly there is a lot going on in the markets this week… to say the least.
The fifteenth straight FOMC event since the start of interest rate hikes some
two years ago. The first FOMC event not chaired by Greenspan in two decades. A
double handful of widely-watched economic reports Thursday & Friday. End-month
and end-quarter antics expected as well.
There is absolutely no way to guess or predict
what will happen next. An upside bias is expected, especially into the close of
pit-session trading on Friday. First sessions that follow an end-quarter event
tend to be wild & volatile going back on the charts in visual fashion a couple
of years. But that’s next week… this is this week. Unless otherwise thwarted,
the bulls should try to paint these tapes to create alluring statements sent out
to Joe & Jane America for new money drawn into the fray.
Could be volatile, especially Tuesday afternoon
thru Thursday’s close. Same game as usual for us: follow the clear entry signals
on our charts, manage the downside, expect every trade to win big and a number
of them will. Trading really can be simple as that ;>)
Trade To Win
(Online video clip tutorials…
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