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Emini S&P premarket summary

Futures lose momentum and run into resistance early into quadruple witching Friday. We have gapped nicely lower from our settlement yesterday and gap rules do apply. If you need the gap rules, visit us at our website and fill out a contact form and we will have the office mail you one; surely it will become a keeper in your toolchest of trading. The first sign of exhaustion seen was at 4218 right after the European open when we had very few contracts on the buy side and the sell side mounted at 4212 area just above the then developing point of control. Recognize the fact that we are not just spewing out material for you to read from price points pulled out of thin air but from market generated information. It is only the interpretation of this information and how you would look at it as a short-term participant of the market is what is of relevance in this one-page report that we put out each day.

Possible Scenarios and ideas for intraday participation

• We had about 12,256 contracts dive in short at 4212 and those position holders are looking to drive this lower into profit targets from a counter-trend Fib measurement which puts the profit targets at 4174.25 which we already tagged in the premarket and forms the ON low.
• A squeeze into that prior resistance area of 4225 into the open is entirely possible as options and futures contract holders position themselves for the coming week(s). Continuation short trades from where we are at the time of this writing [4184], isn’t too good an idea as it appears late in the game. If you are not already short from the ON session, do not try and enter short at these lows.
• 4171-4180 area could see participation positioning long. As the low point [4173.50] did not fetch too much interest with about 88 contracts almost evenly positioned short/long at those lows.
• Traders of $SPY ETF options should focus on calls expiring mid-week next week and to get decent pricing acquire 430 strike calls.

Key Levels to factor for the intraday price movement.

TPO Chart

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