Lower-than-expected jobless claims may have helped the S&P 500 continue its upward move from the previous three sessions. Shortly after the employment numbers, we learned that the European Central Bank will leave its interest rate unchanged…for now. The rally continued after better than expected Factory Orders. The market remains in a “cautious” bull trend.
CHUGGING HIGHER
The December S&P 500 is trading nearly 20 points higher than the start of the week. The markets pushed through resistance at the 1450 level and continued through to 1455. There has been a lot of talk about a lack of consumer confidence, but traders appear to like buying this market.
THE TRADE
I like buying opportunities on any retracements to the 1452-1454 area. New support should be coming in right near 1450. Our next resistance should come in near 1460-1461, a good place to consider taking profit. If the bulls really start to run we could go try and test 1465. FOMC minutes will be released at 2:00 PM ET, I generally don’t like to take positions into numbers, so be careful.
Stay alive and come back to trade another day.
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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