Post Detail

Emini S&P futures premarket analysis

The PPI for final demand increased 1.0 percent in June, seasonally adjusted. Final demand prices rose 0.8 percent in May and 0.6 percent in April. The signs of a strengthening economy has boosted futures prices here into the late premarket. Later today we have Chair Powell on the docket and his testimony to the Congressional Committee surely can sway markets one way or the other. The market profile is showing sellers at the top as always facilitating the squeeze higher into the news. We have gapped up nicely from yesterdays’ settlement therefore gap rules do apply. This is a news based push higher and corresponds with the news based push lower from yesterday. As we sit right now and into the Fed Chair’s testimony later today, we could go either way as inflation and the variant in the virus, according to analysts, remain the topmost concerns for the markets. Equities markets appear bullish especially the Nasdaq which continues it’s run up and is determined to take out the 15K handle.

Possible scenarios and outline for trade positioning

• My ideal long trade would have me positioning at 4365 which is the developing point of control. Using that as an entry, I would more than likely position my stop below 4361.50 but above 4357.
• The only good opportunity for shorts today would be at the failed breakout at highs [4383.75] from yesterday at which point there are also some poorly positioned longs who will likely look to break-even so that price point could generate an initial momentum lower for shorter duration short traders.
• Gap off the PPI data means gap rules apply. Trade directionally with caution knowing that initial support is at 4354 and initial resistance which we are, at the time of this writing [9 am], trading over is at 4368. There is also notable resistance at 4386.25.

Key Levels to factor for the intraday price movement.

TPO Profile mapping

Share