SPX Futures Up Against Strong Resistance
The Night Owl Trader | May 27, 2016 01:33AM ET
The Hoot
Actionable ideas for the busy trader delivered daily right up front
- Friday depends on ES pivot.
- ES pivot 2088.00. Holding above is bullish.
- Next week bias lower technically.
- Monthly outlook: bias lower.
- YM futures trader: no trade.
Last night we called the Dow lower for Thursday and that's what we got on a lower than average volume day good for s scant 23 point loss in the Dow. Ah, I can already hear the helicopters warming up for their flights out the the Hamptons for the Memorial Day weekend. In honor of this, we're skipping the detailed charts tonight and making it a Night Owl Lite nite as we round out the last week of May.
The technicals
Market index futures: Tonight, all three futures are barely higher at 12:53 AM EST with ES up just one tick.
ES daily pivot: Tonight the ES daily pivot rises again from 2084.42 to 2088.00. That still leaves ES above its new pivot so this indicator continues bullish.
On Thursday we got a number of reversal signs on the charts. ES in particular is hard up against strong resistance and not too far from its daily pivot. Because we haven't seen the actual turn yet, I'm going to try a conditional call: if ES manages to remain above its pivot by mid-morning Friday, we'll close higher. If on the other hand it falls through by then. we close lower.
In any case I'm not expecting a lot of drama either way since a lot of people are probably already thinking more about putting hot dogs on the grill than putting trades on the market. That's all she wrote. See you again Monday night and Happy Memorial Day!
YM Futures Trader
No trade tonight.
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