The S&P 500 futures are approaching a major level of support at 1670, with an additional band of support that spans from 1665 to 1666.25. How price responds to this zone could tell us how the market will react throughout much of the early part of the week.
The market continues to be extremely bullish, with every dip being swiftly bought up by the bulls. In my opinion, the market is now nearing another decision point, as the S&P 500 futures continue to hold below the major resistance zone of 1700 to 1705.
The market experienced a mild two-day dip, and that’s all that was needed for the bulls to take advantage of another buying opportunity. The S&P 500 and NASDAQ 100 futures are both pushing higher heading into the RTH open, and overnight volume was the healthiest of the week, so more upside could be seen ahead.
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.
