Wednesday, June 8, 2016 S&P 500 Futures #PreMarket Comments by @FairValueTrader

Overnight, the ESM6 traded to yesterday’s globex low of 2106.60, bouncing there and maintaining a bid during a weak European session, then reaching a 2114.50 high, just 3.5 handles from Tuesday’s high. If you caught the afternoon video, I suggested that as long as that level held, I considered yesterday afternoon’s selling just “noise,” as buying dried up at a new contract high on a low volume day.

Globex volume is just over 120K into 7:00 am CST while today’s calendar is still relatively light. Heading into the cash open, I maintain my bias for the week. Either look for an early low to buy in the first 90 minutes of the regular session, or buy the open and expect to buy small dips as long as price trades above the 8:30 am CST print. Buy levels to watch are yesterday’s volume POC at 2110.25 (**) and 2106.50 (**). This opens the door to the 2120 target as well as the potential for the weekly R3 at 2128.58.

To the downside, sellers need to push below 2106.50 before I would start to consider selling rallies as a bias. From there, the next levels would be a 2099.50 (*) and then the 2094.50 (***), which I see as significant support of any selling today.

Again, I am not predispositioned to look for fade levels higher, as I don’t intend to fight this higher price action unless I see something at the moment intraday.

Note: Today, I will begin placing asterisks (*) beside levels to designate the intensity of my interest in that price, ranging from one to three asterisks, with one indicating the mildest and three denoting the strongest interest.


Michael Blythe
Futures Strategist
Hamzei Analytics, LLC