We’re on the second day of breakout setup in the S&P futures; two increasingly narrow trading range days. Friday did manage a small push above Thursday’s high, and was able to close over Fibonacci retracement resistance at 1066.13. In spite of this, Friday had the narrowest trading range of the previous seven sessions, one of my most favorite breakout patterns.
click to enlarge
The intraday chart below shows what the market has done so far today. An early session push over Friday’s high (the primary breakout point) failed, leading to a selloff. That selloff gained steam, and broke through support at the midpoint of today’s session at 1071.38. These levels served as support for a bit, and then follow through selling pushed it down to the day session low at 1066.50.
For the time being I’m still expecting a directional move, although it may take until this afternoon for it to develop. The prices to watch here are the session low at 1065.50 and the midpoint of today’s range at 1071.38. A break of either of these levels could lead to the directional move that breakout setups often forecast.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
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