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Premarket summary for July 1, 2021

As mentioned in yesterdays’ premarket analysis, the grind higher past the settlement yesterday led to futures taking out the 4300-price handle and top out at 4305.75. Initial Jobless Claims for June 25^th 364,000 thousand vs 390,000 thousand consensus estimate. The prior reading was 411,000 thousand so the signs of an economy returning to work after the worst pandemic in decades is positive and should grind us higher is what I am thinking. It is a bit difficult to predict which way we lean on this first day of the month. Futures valuation looks positive into 4294 and weaker on moves higher as the number of sellers increase as we march up the ladder into that ONH as you will see from the TPO mapping below. There is no measurable gap at the time of this writing so I will curtail my comments till we sit at least an hour past the open.

Possible scenarios and outline for trade positioning

• We suggest long trades from about 4287 from where we ourselves are long this morning and trading with a stop to protect the cost of trade. Long traders can focus on 4314 being easily achievable into and past the settlement today.
• Short-focused traders should keep an eye on the lack of interest by participants in wanting to take out the ON high. If there is hesitation there, expect us to at least revisit the ON low at 4286.
• The top level resistance is at 4310.75 and that should be good resistance for the intraday. I do not believe we go much below the ON low and if we do – there is stronger support between 4273 and about 4281.50 which will likely hold the fort for the day.

Key Levels to factor for the intraday price movement.

TPO Mapping

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