The E-Mini S&P 500 is beginning to show signs of exhaustion, and the NQ is already below major support. Gold continues to build out within a large trading range, and Crude could be closing in on a near term high. There’s tons to play before the weekend starts, but let the market come to you and watch your levels closely. The first zone that I’ll be watching is 1683 to 1684.50 in the ES. A failure here could introduce big time selling. We’ll see soon enough.
It seems like the entire market is coiling. Nothing is moving, but everything has huge potential for movement. Like the market, I am in “wait and see” mode, and we have a slew of reports and news out today that could finally influence a breakout in a wide variety of markets.
Keep an eye on Crude Oil and Gold. Both of these commodities are experiencing multi-day compression ranges, which forecasts the next phase of price expansion. As a matter of fact, each has formed a 5-Day Narrow Range setup, which carries with it high probability odds of a breakout move ahead.
The market continues to push higher, but is certainly beginning to lose a little steam, as the average daily ranges of the markets have tumbled in the last two weeks. As a matter of fact, the S&P 500 futures had an ADR value of 32.75 two weeks ago, and is now trading an average of just 12.50 points per day, including extended hours trading.
Another day, another rally. The market continues to push higher at a relentless pace, as the S&P 500 futures have been positive 11 of the last 12 trading sessions en route to another potential test at the YTD high of 1685.75.
