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| S&P futures 30min chart |
Today was the 5th day the S&P futures faded into the close. Several indicators (sentiment & technical) are suggesting we are getting close to an important low. The big question is... at what level will it come?
You can see that the fan lines I've drawn in have marked some important targets so far. The lower fan line that you can't see matches up to about 1315-1320 for tomorrow. One interesting thing to note is the action in 10yr Treasury futures today. As the S&P futures dropped to new lows on the day, 10yr Treasury futures meandered around and did nothing. Sometimes that can be a heads up that equity index futures are getting ahead of themselves on the downside... so it's something I'll be watching closely tomorrow. Another interesting thing to note is the action in the Russell futures. The bulls held 775 again today as the S&P futures made new lows.
All things considered, I think we are setting up nicely for a summer rally. I'm being patient before entering on the long side... and will be looking for a solid move above 1363ish on S&P futures and 800ish in Russell futures for confirmation to get heavier on buying dips.