The S&P 500 and NASDAQ 100 futures each got decent downside breaks from their respective coiled ranges Tuesday, but more downside could be seen early in today’s market if price continues to remain beneath the important 1695 pivot.
The S&P 500 futures have formed an extremely tight range over the last several sessions, and the time is coming for a breakout. There are clear lines in the sand across for of the instruments below, and none more clear than the 1695 level in the ES, which is as clear a bull/bear line as I’ve seen in weeks.
The S&P 500 futures can finally check “Reach 1700” off its to-do list, as the ES finally reached this highly anticipated, psychological milestone, while Gold continues it wild and volatile run.
Now that the Fed is behind us, all eyes will be on Friday’s Non-Farm Payroll (NFP) number. As a matter of fact, all eyes have been on the Jobs number for a few weeks, as the S&P 500 futures has traded within a highly compressed range the for three straight weeks. Eventually, a breakout from this range could spark some major movement soon, so watch the outer boundaries very closely – 1695.50 and 1670.
Today is a big day for news, as the market will absorb news from the ADP report, Advance GDP, Chicago PMI, and the Fed. Clearly, how the market perceives this news will affect price movement heading into Friday’s Non-Farm Payroll number, which will likely kick off the next major move in the market.
