Will This Pattern Pan Out In The E-Minis?
The
March SP 500 futures opened Tuesday’s session with a small downside
gap after final Q3 GDP offered no new surprises for the bulls. A quick gap fill
gave way to a price pause ahead of the final Michigan Consumer Sentiment Index
at 10:00. The number showed a decrease at 92.6, but still came in higher than
expected. The contract saw a delayed response to the news, more due to a lack of
volume than anything else, that was capped at R1 resistance at 1,095.75. Range
and volume dried up fast The test and hold of the Daily Pivot sparked some light
short-covering good enough for the contract to trade back into positive
territory.
The March SP 500 futures closed
Monday’s session with a gain of +0.75 point, and finished in the top 1/2 of its
daily range. Volume in the ES was estimated at a holiday-lightened 267,000
contracts, which was behind Monday’s anemic pace and well below the daily
average. Looking at the daily chart, the contract posted a “NR7″
day, but continues to establish a new, higher trading range with a rising
wedge.
On an intraday basis, the
contract pulled back and reversed twice off of the 1,090 triangle support area
to settle on 30-min support.
Wednesday morning gives us the
November Durable Orders report at 8:30 am ET, and its expectations for a
decrease to 0.6%. Weekly Jobless Claims will also be reported a day early, with
an estimate for 355,000.
Happy
Holidays!
This will be my last column for
the year as I get ready for the onslaught of relatives on Xmas day, and I
normally take the week off between Xmas and New Year’s to spend time with my
family. I’d like to thank everyone for their support this year and also thank my
critics for keeping me on my toes and making me think harder. Get rested for a
great new year!
Please feel free to email me with any questions
you might have and have a great trading day tomorrow!