Tuesday, October 25, 2016 Morning Comments by Michael Blythe

Good morning. A sub 10 handle cash hours range yesterday in the S&P’s on total volume barely hitting 1 million, then overnight a quiet range with volume just at 92K as of 7:23 am cst this morning. The calendar is not exactly quiet but there doesn’t figure to be anything market moving as the trade will likely be to fade the edges of a tight range. Maybe (??) something picks up into the end of the month later this week but just from eyeballing it, the ESZ has traded in a 2.5% range in October which is remarkable given the seasonality as well as calendar (elections, FED etc).

Late September and early October saw resistance between 2150-68 where price is meeting again. I expect for whatever bids to come above 2150 to be in the overnight with these resistance points much more challenging to attack in the day session. It’s gonna be a grind above 2150.

Ps. I’m not including an early pivot with this price action. It’s harder to trade directional and more effective to fade edges as possible.

2168 (***)

2163 (*)

2159 (**) Third Upside Target – Stronger Resist Point

2154 (*) Second Upside Target + Resist Area

2150 (**) First Upside Target + Initial Resistance

2144 (*) First Lower Support + Initial Downside Target

2140 (**) Second Lower Support + Next Target

2135 (**) Third Lower Support

2129 (***)


All the best;
Michael Blythe
Futures Strategist
Hamzei Analytics, LLC