Thursday, June 30, 2016 #PreMarket Comments by Michael Blythe
Good morning. Impressive resilience by global equities with a continued (but weaker) bid overnight. At this point convictions are likely useless. I bought some lotto puts into the close yesterday (mentioned in the room) from a pure risk/reward viewpoint as a 85 handle rally *seemed* excessive without any pullback.
For bears, they need for the ESU6 lower high in the European session to help push back through the 2056 Globex low and maybe with the quarter end trade, there could be some push back to 2050 (at least)
Bulls, just need a higher low, which gives them a lot of room at this point, price could retrace back to 2040 and bulls be theoretically OK.
Today I’ll be simple. If price is above the cash open then I will only be long, if below the open then I will lean short but be open to buying because for the moment, it is a buyers market.
Levels to the downside are 2062 (**) and 2056 (*). Below 2056 I don’t have anything until 2045 (*). Upside interest is 2067 (*) which I will use as an early risk marker then 2075 (*) followed by 2080 (***) area which I would expect to see considerable resistance.
All the best;
Michael Blythe
Futures Strategist
Hamzei Analytics, LLC
