With Volume still under average, we have been watching prices move slowly and through tight ranges for about a month now. Prices have moved their way back to the highs we visited back in Jan in the mid 1140’s. Prices seem to be into the overbought area as we are approaching this, with prices climbing back 100 points from our Feb 5 low of 1040.75. A sell of in the near future isn’t out of the question, but watch for it as prices could keep floating through without an increase in the volume to support a move either way.
Wednesday’s trading could see prices revisit the previous days high of 1144, then 1148 as the high from Jan. Should prices decide to test back down we would be looking at 1136.75 and then 1134.00, with 1126 as an extreme low.
After another day in the consolidated books, trading moved a slightly higher 9.5 points through Wednesday’s trading. Prices did hit resistance in the 1125 area, where price tested and failed moving back into the sideway channel we have been stuck in for the last 3 days. Volume was low again with only about 1.56M through the day.
Thursday I am watching for signs of a continuation back down, or another move up. This sideways trading is a market in decision so be ready when the decision comes. If we decide on changing direction I am watching for a move back to 1106, then 1100, and 1093. Should market makers move prices through the 1125 resistance, I will be looking for 1127.25 and 1138.75 as the next targets. Remember to get good confirmation, we are not necessarily out of the consolidation yet. A lack of Volume may keep this market right where it is for another day or two. Only one way to know.
See you at the starting line!
S&P500 day trading course levels of support and resistance. Looking for support at 1102.75 and extreme high of 1125.
This could be the Lower high on the long term bullish trend. If the S&P500 emini breaks above the 1127 on an hourly chart we could retest previous swing high.
