What’s ahead for the e-minis
Stock index markets have
been on the move since last Thursday’s open, and appear poised to
keep the party going thru the end of this week and into Memorial Day’s long
holiday weekend.
ES (+$50 per index point)
S&P 500 futures ranged from the R1 level (twice)
as session highs down to daily pivot point value as session lows. In other
words, it was just light-volume technical action all day. The 1290 area is a
clear magnet of congestion dating backwards for many months. We expected price
action to congest here, and so it is.
ER
(+$100 per index point)
Russell 2000 futures painted a similar picture.
Sideways roll thru a normal day’s range, no bias or directional action in the
end.
ES (+$50 per index point)
A break lower thru the 1290 level seeks 1270 area
next. That could easily happen within the same session if sellers step in with
volume again. The 1260 ~ 1270 zone was a critical juncture numerous times in the
past year or so. Strong magnet below that beckons to any further weakness this
week.
ER
(+$100 per index point)
Small caps stare at 710 ~ 700 zone of magnetism
below. Unless buyers take price action to new highs on heavy volume with gusto,
lower levels of attraction will ultimately win out.
Summation
Following the sharp move lower from last Thursday, a bit of rest is normal.
Today’s CPI report along with tomorrow’s econ-drivel slate includes Jobless
Claims, LEI and Philly Fed thru noon. These two sessions next are prime for
emotional reaction to breaking news. We’ve enjoyed normal market action inside
the minis for the past four sessions straight, and there is no reason to expect
it will do anything but improve straight from here!
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.