Monday, July 25, 2016 Morning Comments by Michael Blythe

Good morning. Tight range last week, should be at least *somewhat* better this week with the EOM trade and FOMC.

Downside levels are 2164 (*) which is fair to lean on for a very early buy followed by 2161 (*) and 2157 (**) which was last week’s dip buying marker. Below that is 2154  (*) which is last line of defense before 2146 (***) which is the weekly risk marker for bulls.

Higher levels begin with the 2172 (*) high overnight, followed by the 2177 (**) area where I would expect for gains to reach resistance today.

For the moment, I still prefer to buy the dips until proven wrong, but selling new highs has been working, but I’d do that with smaller size.
 
All the best;
Michael Blythe
Futures Strategist
Hamzei Analytics, LLC