Friday, the S&P futures (ES) traded lower in a sell-off from the recent highs at the 1335 level. Trading was one-sided to the down-side, but became climactic on the smaller time frames near the end of the day. The market rallied into the close and closed off its low due to the climactic action.
I’ll be watching any early morning move back to the area of Friday’s low (1318.75) for a potential buy opportunity. A little lower at 1317.75 fills an outstanding gap. 1310 would be the next level down should support fail around Friday’s low. A move back into this area would suggest the market is entering a much broader trading range than apparant now.
The 1327-1330.50 area had a lot of trading on Friday and over the past several days. It would be a first level of resistance to the upside. This is also the middle of the fairly narrow trading range that has formed since the end of March.
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