Market Update

click image to enlarge


Right on cue…the S&P 500 Futures Options bounced off the trend line support I pointed out in yesterdays’s post (see blue shaded highlight on monthly bar chart above) and the overnight futures (futures symbol: ES) are up +126 as I type (at 9:20 am).  That translates into +1,110 points on the Dow Jones Futures (futures symbol: YM).  The futures hit their upper trading limit and were halted prior to the cash market open.



On virtually every tracked symbol, the short-term timeframe is now in play.  I have posted a screenshot of the S&P Futures above.  That is the place to watch today to see how price reacts at resistance.  Bears will likely try to reestablish short trades within the shaded red zones, where the risk reward ratio is 1:3, but if price jumps above that resistance then the next target higher would be the top of the range at 2762



As I have been saying–the pressure changes from being on the bulls to being on bears if and only if the short-term stop/reverse line gets crossed to the upside.  When that eventually happens, the upside could be spectacular.

See the screenshot above for the summary tab for the S&P 500 futures.  The current stop/reverse line is at 2762, which is the current short-term range top in a trending short-term bear market.

This could be a very interesting day.  Watch that red-shaded bearish ideal entry zone between 2683.50 and 2620 just after the open here.  Bears are going to hop in at the first sign of a pullback.  What remains to be seen is whether they get another easy trip down–or if they are merely being baited in here, only to be used as guaranteed buyers if the futures get another push out of the resistance zone later today.

…my .02