Friday, June 17, 2016 #PreMarket Comments by

Good morning. After the reversal in U.S. equities yesterday, global markets saw moderate follow through overnight. However, the ESU6 traded up to 2075 area and was once again resisted there, leading to a retracement of the sessions gains and trade below 2070.

Today is June expiration, which has very good stats; but this week has not been kind to bullish stats. With the lack of buy momentum overnight, I expect for some two-sided tape today as the expiration as well as continued Brexit balancing will create a mixed environment. Bears controlled last week’s close and this week’s open, it will be interesting to see who may control this week’s close.

Friday is the most difficult day of the week to counter-trend trade the intraday momentum (based on my studies). Therefore, I will keep an eye on the 8:30 CST opening print and look for buys above and sells below, with the exception of possibly looking for a first hour low to buy.

Prices to watch lower will be 2064 (*) followed by 2061 (**); below there, I believe the door opens for a revisit of yesterday’s low, and wouldn’t consider a buy until the 2050 (**) area. To the upside, the 2071-2072 (*) area could offer initial resistance followed by the pivotal 2075 (***) price. The line in the sand to sell rallies or buy a breakout seems to be that 2075, a break above; and I would expect for some buy stops leading up to 2080 (**) and possibly 2089 (***).


All the best;

Michael Blythe
Futures Strategist 
Hamzei Analytics, LLC