E-Mini S&P 500 (CME:ESM14)
U.S. Equity futures continue to grind higher with two of the three major indices making new all-time highs yesterday (Nasdaq remains the only one still trading well off its highs). With the S&P 500 now trading above previous resistance at 1892.75, a test of the 1900.00 level seems to be a very real possibility. Surely this level will present a significant psychological level on the chart and could introduce some additional selling pressure into the market.
All things considered, the S&P 500 remains strong with both near-term momentum and longer term price action both favoring a bullish argument. The high probability opportunity appears to be on the long side of this market, buying corrective dips into support. Near-term bullish momentum remains in play above the 5/7 low around 1854.50 with longer term positive sentiment valid above 1803.00.
E-mini S&P 500 30-minute Bar Chart (e-Signal)
The Aussie dollar looks to have regained bullish momentum as it gears up for a potential run at the previous peak around 9420. The intermediate-term bias appears to favor a bullish stance on price action above the relative low at 9176. The month of May has played host to some decent positive price action in the Aussie and local momentum appears to be neutral to slightly positive heading into today’s session. If price is going to avoid falling back onto its heels, look for additional support to enter the market around 9285 – 9294.
Sustained weakness below 9285 could paint more of a sideways, choppy picture for future price action in this market. The most recent move lower that occurred earlier this morning coincides with a heavily oversold market environment, especially when one looks at the RSI indicator relative to previous readings at recent market lows. This severely oversold reading could be alluding to a potential positive reversal forming in the market, which could give further confirmation for those looking to establish a bullish position in the Aussie dollar. The 9363 pivot appears to be a plausible level of initial resistance in the market, followed by 9371, 9385 and 9420.
Australian Dollar 30-minute Bar Chart (e-Signal)