Review & Plan - Thursday
Review
Another example of a slow summer trading day yesterday with a new contract high, though the cash index (SPX) is still short of taking out last July's all time high.
The low volume small ranges this week have made poor highs each day, where I suspect day time frame buyers gave up and were not supported by longer time frame money.
The dips have been bought so far though the first major risk point for short term longs is the 2108.25-09.25 zone and last week's high at 2106.00. Acceptance below 06 could lead to a break down to the next key support at 2099/00 and then last week's low at 2082.75.
Above we have yesterday's poor high at 19.75 and just measured moves/fib levels above there.
There is still no excess at the highs which would signal that the upside auction is potentially finished if it was there. We're also 2 weeks away from the biggest scheduled market moving event of the year with the Brexit vote which will no doubt keep a lot of investment money out until this is decided. Key government bond yields continue to make new lows, e.g German 10yr now at 0.046%!
ESM6 - June
Overnight
Trended lower from the open with range currently 2109.25-18.50 vs settlement at 18.00. Crude has been drifting lower, now back below $51 again.
Plan
Jobless claims is main eco news at 7.30cst. Bulls still have the longer time frame bias.
Short term bulls have control above last week's high and the 2105.00-06.50 zone. This is my bull/bear zone for today.
Below there and looking for some long liquidation and shorts to press for 99/00 which is key defense area for longs in my view. Below there and caution longs as last week's low would be short's target.
Above 05/06.50, overhead zones are targets/short areas.
Broken support zones become resistance and vice-versa.
Will be watching market internals and momentum for a better read into any zones. Caution as rollover and volume/cumulative delta can be misleading.
Zones for today: