What you should look for in the eminis today
Employment data came in much weaker
than expected, upon which the overnight futures rally continued to climb higher
still. It is the old, “Bad news is good news for the market” nonsense upon which
emotional traders try to rationalize their decisions. If the Fed stops raising
rates and hold that position, stock markets can only rise straight to the moon.
Right? That’s what many participants feel and act upon, be it right or wrong in
the end.
ES
emini
(+$50 per index point)
S&P 500 futures have buzzed their way into a
tightened consolidation over the past few weeks. The next directional swing,
upward or down is looming soon. 1300 level is widely watched as key support
below.
NQ
emini
(+$25 per index point)
Nasdaq 100 futures look weak to outright
bearish on the daily chart view. While small cap stocks continue their magic
carpet ride higher, techs have been shunned along the way. Unless this index
turns it all around and takes out recent highs above 1760, Dow Industrial’s
artificial value relative to 2000 all-time highs (shuffling that deck with
different stocks to boost performance) means nothing to serious market
investors.
Summation
Any signs of weakness today will be sold into until bulls can prove the tape has
underlying strength. If an early pop fails, it could be a long way to the
session lows from there. If buyers keep pressing upward, they could squeeze ’em
hard into the close. Next week has strong odds to be directional with normal to
wide-range swings along the way.
Trade To Win
Austin P
(Online video clip tutorials… 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.