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Premarket summary for S&P futures

The ON high took us close to 30 points above Friday’s settlement and stalled as the ticker recorded no buys above 4419. Again, valuation from the break lower this past Friday remains intact as we stalled below 4385 and which will likely provide support to the markets during the day session here on Monday. Of interest today would be to watch the NQ which was the fastest index moving lower off the news last Thursday after earnings and guidance announcement by Amazon, and could find some return to value from that liquidation break lower. Usually, Mondays’ provide better opportunities for stocks versus futures. We could find support above 4401.25 failing which there is a solid level of support at 4488.25. Holding above 4407.75 into the open will find sellers again today at the ON high.

Possible scenarios and outline for trade positioning

• The ideal long trade today could be anywhere in between about 4400.50 and 4407.50 in that 7-point range with a stop just above Friday’s settlement at 4389.50. This avoids the risk of being stopped out and at the same time deals with the intricacy of trading the Sunday into Monday gap situation.
• If we begin stalling around 4418.25, that would be an ideal intraday short and would mirror the sentiment of ON participants. The ideal short trade would have me positioning at 4416.75 which is the level I would be watching for “Buy side” volume and if it does not exist, shorts will likely do better from that point on lower into that Friday settlement level.
• Gap rules apply since we have gapped nicely higher from Fridays’ settlement.

Key Levels to factor for the intraday price movement.

TPO Mapping

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