The December S&P contract enters today’s session trying to reverse a five day sell off.
The market has dropped almost 4% over the five previous trading sessions. Poor earnings reports have given the bears enough muscle to keep the market down. Bulls received a little help this morning, with lower than expected Jobless Claims and a jump in Durable Goods Orders. The 9.9% increase in new orders was led by the transportation component, due to a large increase in aircraft orders.
These bits of positive data may give the bulls a reason to fight back.
HELD SUPPORT
The December E-Mini S&P 500 held the 1400 level in the overnight session. A slow move up finds a new support level near 1407. Early trading saw the market push through resistance at 1414 and settle down a bit. I expect the market to trade in range bound channels, with plenty of moves up and down within the channel.
GOOD DAY FOR SCALPING
Traders will test their patience today. Any downward pressure can see the market push down below 1410. I like buying opportunities from 1408-1410, with an upside target of 1414-1415. If the market is able to push above 1416, look for the channel to trade from 1413-1420. Today should give plenty of opportunities to scalpers to participate. Stay within your risk parameters so you can take advantage of them.
THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.
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