The S&P 500 futures are getting closer and closer to reaching 1700, but the pace has been snail-like. I’ve said this all week, but today could finally be the day. No, really. If price can remain above 1690, there’s a great shot to test 1700 today. But as I’ve mentioned before, I’m more interested to see how the market will react once this level is hit. I’m leaning toward higher prices toward 1710 before any real signs of selling are seen. But only time will tell.
Is today the day that the S&P 500 futures hit 1700? We’ll see, but whether it happens today, or later in the week, I can’t see price getting this close without hitting this level.
While reaching 1700 seems like a foregone conclusion, I’m more interested to see how the market responds to this level after it is reached. Will the market automatically sell? Will the bulls push price way beyond 1700 to make a statement? Will price hang around 1700 for some time as bulls and bears jostle for position? The answers to each of these scenarios will give us a better understanding of how the market may play out in the days and weeks ahead.
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.
