With the events in Ukraine, Israel retaliating to terror attacks from Gaza and the concerning issue of the ISIS in Iraq and Northern Syria, one would think we should see some risk premium building into stock indices that would push stocks lower, yet after a brief sell off we are seeing a resumption of the strong uptrend.
When looking at Stocks in general, I like to look at the SP500 as I feel this index is the leader amongst stock index futures.
Looking at a daily chart below we see that the market has a LOT of respect to some timing symmetry.
I measured to move DOWN between April 4th 2014 and April 14th 2014 on SP 500 futures and then projected that with the down move we just witnessed between July 24th and August 8th. The strong support zone between 1885 to 1895 held impressively and the market bounced sharply from these levels as one can see in the first chart below.
E-Mini S&P 500 Equalized Active Daily Continuation
What's next? Well the key level to observe is 1985.75, the high made on September SP 500 futures back on July 24th 2014. If we can get a close above that level, we may see another strong leg up as projected in the second chart below where I have taken the magnitude of the move up from lows made April 14th to highs made July 24th and projected into the future where you can see some possible levels in case we can get a close above 1986. I update our blog readers daily on any developments I see in the market so stay tuned!
E-Mini S&P 500 Equalized Active Daily Continuation
Keep in mind that there is quite a bit of risk floating around with factors that are outside anyone's control and this market can become fragile at any time.
Disclaimer - Trading Futures, Options on Futures, and retail off-Exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
About Ilan Levy-Mayer
Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company.
Take a step in the right direction and contact me today, Toll-Free: 800-454-9572 or direct: +310-859-9572. You may also directly e-mail me, Send mail.
