Tuesday's session was a
gap & dribble lower for stock index futures. One sell program series
orchestrated midday when volume is lightest pushed markets to session lows, then
price action fluttered sideways for the duration.
We've seen no accelerated selling, now sharp surge lower and subsequent bounce
higher. Just orderly distribution and absence of buyers. This type of price
action is not what lasting lows are made of.
ES (+$50 per index point)
S&P 500 futures traded into the 62% support and closed right at the 50-day
moving average magnet as expected. Pre-market futures at the time of this
writing are several points below the 50-day moving average and right back to key
62% value again. A daily close below this level brings 1255 into sight for next
potential targets to come.
ER (+$100 per index point)
Russell 2000 futures held the first test of 50-day moving average on Tuesday,
now poised to open the session just below as we head towards the pit-session
period today. 710 and then 700 are next on the menu if 718 fails to hold support
on a daily closing basis.
Summation
Today is the last trading session for March emini futures as front-month
contracts. Thursday rolls over to the June "M" contract as front-month. This
happens only four times per year, and often creates some serious volatility
and/or directional moves in the process. We've had no outsized intraday session
moves in quite awhile... be prepared for potential of a serious directional push
and possibly large-range event in the next few sessions ahead.
Trade To Win
Austin P
www.CoiledMarkets.com
(Online video clip
tutorials...
open access)
Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets.
Mr. Passamonte's trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.
