We’re seeing weakness across the board during pre-market trading this morning, especially after the bulls were unable to convert the 1686 level in E-Mini S&P 500 futures, and the 3060 level in the E-Mini NASDAQ 100 futures. Rejections at these levels have sent the market lower this morning, but there are key support zones down below that the bears are gunning for, which the bears have defended during the recent advance.
If all you had to know was one level for Wednesday’s trading in Crude, it was 106.90, which delivered a huge 2-point move when price failed at this zone early in the session. That’s $2,000 per contract traded in a matter of 3 hours, which is tough to be beat.
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.
