Wednesday, July 13, 2016 #PreMarket Comments by Michael Blythe

Good morning. Volume is not slowing down as much as I anticipated with yesterday’s 1.7 million traded mini’s but price certainly is slowing as it feels that it is winding up tight.

Last two days had similar price action, buying the open paid very small while buy the early pullback paid the daily range. With Globex volume slowing down (157K this morning going into 6:45 am CST) I am becoming less optimistic about buying opens except on smaller size but will try to continue to buy an early low.

At some point this week, I expect an early low to fail to hold but until it does I have to keep trading the trend, after all is it Jul Expiration week which tends to have positive stats. I am also thinking that the upside is feeling limited and I have become willing to find a spot or two above to fade this week on smaller size as I would think out of three remaining days that there will be one of each higher/lower/flat closes but I cannot say in which particular order.

Downside prices: 2145 (*) early downside risk marker/pivot followed by 2141 (*) below that I’ll watch yesterday’s RTH low at 2138 (*) then 2134 (**) and 2130 (**).

To the upside: 2147 (*) is a higher risk marker/ early pivot then 2149-50 (*) area which is yesterday’s high as well as my weekly risk marker referred to all week, then 2155 (*) which would be first target followed by 2160 (**) where I would expect gains today to be capped.


All the best;

Michael Blythe
Futures Strategist 
Hamzei Analytics, LLC