Chart of The Week - E-Mini S&P 500

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

The major US stock indices pushed into record high territory late last week ahead of the start of the second quarter earnings season. To start this week, we see equity markets on a lower track following strong US economic data last week. Japan and European shares underwent profit taking, and with a relatively light US economic calendar ahead of the release of Wednesday’s FOMC minutes, we may see a round of profit-taking following last week’s record high print.

Friday, July 4th, saw a consolidation within the previous day’s range with light holiday volume after the 7 previous sessions had finished in the green. As we open the week on a bearish note, I would look to be a seller in the September E-mini S&P 500 just below Friday’s low of 1973.50 or better. My downside objective would be just above the underlying long-term trend-line at 1950. I would place a protective stop-loss order just above Friday’s high print at 1978.00. Should the market follow through to the downside, I would roll my stop order behind the position accordingly. Continue reading "Chart of The Week - E-Mini S&P 500"

Chart of The Week - E-Mini S&P 500

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

As we start the week our attention turns to the September E-Mini S&P 500 (CME:ES.U14.E) as it looks to extend a 6 day winning streak. US equities have benefited from the dovish and accommodative tone from the FED last week. Existing home sales and manufacturing PMI data have added an additional boost to the market this morning. Coupled with last week’s support, the path of least resistance in the S&P 500 is a move higher. The primary concern that could spark profit taking in this market are the geopolitical risks surrounding the conflict in Iraq which has given early strength to the Crude Oil market.

As we turn to the chart, last week we saw a breakout of a consolidation pattern in an overall strong bull trend last Wednesday, June 18. Since the breakout from this consolidation, the market has legged decisively higher to put in new all time high levels to close out last week. The market put in a new high print in the overnight session of 1959.75 and I expect this bullish momentum to continue this week. Continue reading "Chart of The Week - E-Mini S&P 500"