S&P futures target

S&P Futures Daily

Today was the 4th day in a row (if you ignore the holiday close) that S&P futures closed below its 20day WMA. I'm expecting a drop to the red box area (1375-1387) tomorrow and Friday. I think Gold futures are ripe to pull back too.... with the first level of potential support at 1670-1675.

Intraday update

S&P futures bulls are grinding it back up towards the highs and trying to regain control over the 20day WMA at 1406ish. Short term indicators are looking ripe for selling and the bears are putting up a fight.

Intraday volume is suggesting a 12-15 point range. The high of the day session is 1408, and the low is 1400. That puts a high target area at 1412-1415 if the bulls get busy, and 1393-1396 if the bears get busy. I'm siding with the bearish target for now, or until I see the bulls take back control over 1406ish.

CAB ... TAXI ... CAB ... Yeah it's a taxi cab. (Old joke)

Gator's Chart of the Day: CAB

Yes it's extended.  It's at an all-time high so it has to be extended.  It also made that high on volume well over the 50 day average and that was day one of a breakout from a volatility squeeze.  The short ratio is nearly 6 so the stock can keep this up for a few more days. 

The volatility squeeze trade I've learned from Fitz goes like this:

Phase 1 is the break out and it can go anywhere from 2-3 days to a week but doesn't normally go farther than that.

Phase 2 is the pull back to test the break out.  It may not come back very far so watch for the bounce.

Phase 3 is the move higher from the the successful test.

The Trade
If you like to grab it early then here's your chance.  Take a bite and put your stop back in congestion.  If you use the 20 day sma that will be a little over 5% below the buy so adjust your position size accordingly.

If you prefer to wait for the pull back and successful test you may miss the trade completely.  I don't think that will be the case here because it's not a bio tech or take over candidate making a speculative move but it could happen.