Wednesday, July 20, 2016 #PreMarket Comments by Michael Blythe
Good morning. Bears couldn’t convert a tired market into sell momentum, now the Globex buyers come in once more to push the index near the highs. Today, the light calendar continues and volume is low, just over 150K at 7:25 CSt.
Prices to the downside begin with 2162 (**) if bulls can convert this prior resistance to support on a retest then they will have their base for higher prices. Below that 2157 (*) 2153 (*) and 2150 (*) would be next areas to slow down sellers.
Upside prices begin with last weeks 2168 (**) area Globex high which is just above this mornings high. Followed by 2175 (*) and 2178 (**) where I would expect gains to be limited to today.
Yesterday I said the trade would be orderly, I’m not sure if that’s what I mean. I think today will again be orderly and quiet with the best trade likely a buy off the 2162 area. It’s less complicated to fade the ranges day’s like today if they can be identified after the first hour.
All the best;
Michael Blythe
Futures Strategist
Hamzei Analytics, LLC
