The E-Mini S&P 400 futures contract took a break from Friday’s trading to relax ahead of tomorrow’s big breakout session. Here are the levels you need to watch..
“Tight” Range
You know the market is enduring an incredibly volatile period when a 16-point range in the E-Mini S&P 400 (MCU1) is considered a “tight” range, but that’s exactly what’s happened.
After experiencing extreme daily price swings over the last two weeks, the MC traded virutally flat Friday, creating a 16-point consolidation range, which could lead to a major breakout opportuntiy tomorrow.
Narrow Value Relationship
The 5-minute chart shows the Developing Value Area indicator is going to be narrow for tomorrow’s session, which is usually indicative of a potential breakout opportunity ahead.
This type of relationship can usually forecast a breakout/trending day, which means we could see the type of day that occurred last Thursday – a day that had a price range of 51.5 points! That’s huge!
I’m not saying we’ll move another 50 points tomorrow, but we could easily move double digits.
Levels to Watch
Keep an eye on Friday’s price range for a breakout opportunity tomorrow: 850 up and 832.50 down.
A downside push through the bottom of the range could yeild a target of about 815, with the potential to move to 800. If you want an earlier short entry, keep an eye on 837.
Should an upside break occur through 850, watch 860 as a first level target, with the potential to move as high as the Quarterly VWAP level of 900.
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So what are you waiting for?
Let’s see how tomorrow plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
