Rout of the Range February 3rd

5 day balance area
The S&P 500 futures sold of early through the previous 5 day trading range, leaving a questionable low at just 2 ticks above the previous week’s low at 1964.50. Trading below 1910.25 leaves the current down trend in tact, trading above that level could usher in more buying/short covering. The market is confused with no clear direction, constantly trading from being too long to too short.

A trade consideration for Thursday could be the afternoon M period pullback low at 1897, and be mindful of the wide point of control at 1882.25.
M period pullback low

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Market Update for February 1st, 2016

Early selling to just 5 ticks beneath the overnight low signaled day timeframe traders in control early, but steady buying and a late afternoon rally showed signs of strength and possible underlying buyers in the market.

With the medium term trend still down, a point of reference for Tuesday is Monday’s wide point of control at 1922.50. Selling beneath that could have the market retest the recent 1910 breakout area.

On the upside buying above last weeks high at 1932.75 could spark a further rally.

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