S&P traded a 19 point range on Tuesday, keeping with the average daily range of the last two weeks or so wihich is around the 15-18 point range. Traders took prices to a low of 1058.00 and a high of 1077.00, touching the 1077 retracement area on the longer term charts and closed the day at 1067.25 up 13.25 points from Monday’s close. Prices left the 1054.00 gap from Monday open as we move into midweek.
For Wednesday watch price as traders decide on the direction for the rest of the week. If price breaks below 1057.25 we could be looking at a continuation down with targets at 1051, 1041.75 and 1020.00. If traders take prices to the upside we could be looking at a target of 1077, 1083.75 and 1091.50. Watch the volume for commitment as we move into the mid week, if volume is light we could stay trapped in the 1057-1077 area for another day or two.
Keep your head up and your finger trigger ready, I’ll see you at the starting line!
Monday’s trading opened the week at 1062.25, the same price as Friday’s close. Prices were consolidated and choppy off the open today but found some direction working their way to the high of 1068.50 shortly after 11am market time. Prices reversed and began trading down for the afternoon session, pushing their way down to test support at 1053.00 shortly before close. S&P closed the trading day today at 1054.00 after trading a 14.5 range throughout the day.
For Tuesday’s trading we could see a test back into the 1061 area of resistance, if buyers re motivated evnough to oush price through resistance our next targets will be 1067.00 with an extreme high in at 1078.00. If prices move down we will see 1050.75 as the first level of support, with a retest of 1041.00 to follow and an extreme low of 1020.00.
Trading opened Friday at 1060.75, up 3 ticks form Thursday’s 1160.00 close. From open prices traded quickly to touch the high of the day at 1064.00, then turned and marched down 23.25 points through the morning and early part of the afternoon. Prices traded to a low of 1040.75, where they were met with support and forced to change direction. S&P then reversed and traded back up, all the way to the high once again forming a double top at 1064.00 just minutes before close, then ending trading for the week at 1062.25.
In the longer term, for Monday we could be looking at another touch back up to the 1071 area if price gets the commitment to move through the 1064.00 resistance. After 1071 targets to consider would be 1077.00, 1082.00 and 1092.50. If the sellers decide to take control back we could be looking at 1050.25 and 1041.75 as targets with 1020 being the extreme low.