SP futures (or ES electronic mini S&P) traded flat through most of the night, then went into rally mode at 7 AM NY time, topping out on release of the weekly unemployment claims, which beat expectations. The futures have since been walking sideways, just above the converged 2 and 5 day cycle centerlines, which are also walking sideways at approximately 1346. That level should be support. The next support level would be around 1335. Resistance is around 1357. 2 day cycle indicators are on the buy side, but at risk of edging to the sell side if the pullback in NY’s opening minutes is not arrested.
Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).
SPX cash opened with little movement, seemingly hemmed in at the 8-13 day cycle centerline at 1351 with the 5 day cycle centerline coming up at 1349. They could mark a congestion area, but would be come either support or resistance, depending if whether the market moved above or below them. They are essentially moving sideways with a slight uptilt, so this could be shaping up as another dull rangebound day. A 2 day cycle projection of 1352-53 was hit on the opening pop. If they can get past that, then there’s room to run to the next indicated resistance area around 1356-57.
Here’s the cash SPX chart (time stamp in lower right corner).
On this chart the yellow lines correspond with a nominal 8-13 day cycle. The cyan lines correspond with the 5 day cycle. The lower oscillators correspond with a nominal 2 day cycle (light blue) and a nominal 5 hr- 1 day cycle (red).
You can follow my real time intraday cycle updates with cycle price targets during the day at The Stool Pigeons Wire at Capitalstool.com.
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