The S&P 500 mini future (ES) spent most of the day Wednesday trying to push the price back above the resistance at 2119 that has been in place since early March. It didn’t succeed but the market still managed to close at 2116, 10 points above the previous close — a small victory for the Bulls, but the first sign of encouragement they have seen all week.
The range in the day session was only 13 points, and the lack of movement is frustrating many traders. The action seems to have shifted to the overnight Globex session, where the continuing Greek debt drama is crating enough concern to move the price. It dropped about 16 points in the pre-market this morning (Thursday).
Today
The mini-futures are still marking time, waiting for something – anything – that will give the market a sense of direction. There is a feeling that a correction is overdue, but apart from the aimless shuffling back and forth there has been no impetus for a move in either direction.
The employment report Friday and the deadline for the next Greek payment, also Friday, may be the spark. There is an eerie echo of the past in this. It was a bad employment report released on Friday, June 6, 2008 that started the sell-off that eventually crashed the market. Tomorrow is Friday, June 5.
We saw some orderly selling from big players earlier this week. It could be nothing. Or it could be the start of something big. Stay tuned.
Major support levels for Thursday: 2092-89, 2081.50-79.50, 2062-59.50;
major resistance levels: 2134-36.60
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