The ping pong ball known as Fiscal Cliff is still in play. Both sides have offered up plans, and both sides have ignored the other side’s plan and sent it back. More serve and volley.
It seems that everyone but the parties involved realize that a form of compromise is needed. Meanwhile, the market can be a victim of any commentary put forth on either side in regards to avoiding the Fiscal Cliff.
EYE ON JOBS DATA
Tomorrow’s employment data will be the on the minds of many trader’s today. Any signs of a sustained, (no matter how small) recovery could potentially push the market higher in the final month of the year. A worse than expected report may add fuel to the downside pressure felt from the unresolved Fiscal Cliff issue.
TIGHT RANGES TODAY
The E-Mini S&P 500 traded in a tight range (6.75 points) in the overnight session. It tightened up even further in prior to the open of the day session. Ahead of tomorrow’s report I am not looking for any big market moves today.
BUY ON DIPS
I am expecting the Dec ES to test support near 1398-1400. I like buying on dips at the level. An upward move should bring the market back 1406-1407 area. If momentum can push through 1407, I expect resistance to come in near 1411. I’d be willing to take short positions on initial visits to that level, looking to cover on 4-5 point retracements. I’m looking for a range bound day; try to take advantage of visits to support and resistance. If you like to scalp you should have several opportunities this session.
Support and Resistance Numbers
December E-mini S&P 500
R3 1420.50
R2 1416.50
R1 1411.50
Pivot 1406.50
S1 1402.50
S2 1398.50
S3 1393.50
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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