Day trading resistance as buyers have reached previous highs.
Day trading through these levels of support and resistance, Buyers have reached resistance with the approach of the previous swing high at 1375.50.
When approaching what will be a double top, we watch for capitulatory volume and failed attempts to breach the resistant high price. Price moved into an overbought condition when it sold off from 1368 to extend the move off the top to 1358, the previous resistance on the move up, and then look for support at the next level at 1354. If price breaks below 1354 then further support at 1349, the 1338.25. Major sell volume came off of 1368-70 to the present levels.
Day trading watches these key areas of support
The S&P500 emini futures could loose their velocity as sellers get squeezed in the 1349- 54 area. When this move turns, many will be “buyers of dips”..especially in equities. Look for the continuation of the major bullish move to 1418 as an extreme high. Where the market will catch support is questionable.
The Point of Control for the bullish trend is 1335 with a break of 1320 creating the possibility of a reversal of this major trend.