Today we will explore a technical scenario on the S&P 500 futures. This market has been unpredictable as of late, gapping down twice over the last week, but its resilience has kept us in a dip buying mode.
Traders this week should be aware of the political news surrounding North Korea, as well the impending hurricane developments over the week to come.
We remain biased to buying weakness, but do not want to be caught buying strong downward momentum.
The weekly pivot at 2460.00, marked by the blue line on the chart, helps us gauge the health of this market. Above this level our bullish bias is stronger, and we are targeting the “gap fill” from Friday’s close to Sunday night’s open at 2473.75.
Just above the weekly pivot is the daily pivot at 2475.75, marked in orange, and last week’s 2479.50 high in red. For today, we believe that any rally would begin to stall in these areas once the gap is filled.
To the downside, the we believe the 2460.00 weekly pivot at the blue line, which is also the low from Monday’s Globex session, offers a good place for support. Below that, the yellow line at 2450.25 is the 50% mark of last week’s range, and we consider this the last resort for bulls to hold up this market short term.
Today’s calendar features speeches by three governors of the Federal Reserve scheduled to in the morning, afternoon and evening.
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