The upcoming week should offer a little something for every type of market participant from the casual to the day trader and from the weekly options spread trader to the four-week time frame! My best ideas for narrow range breakouts on trending pivots for trend-chasing traders are the S&P 500 and, possibly, crude oil and bitcoin. Other symbols are creating exciting range trades.
Void of any major economic news from Europe or the United States, the dollar rose further first thing this morning while stocks came under some pressure. As the session wore on though, the dollar eased back a little against safe-haven currencies while European equities remained under pressure, undermined by a growing sell-off in Italian bond markets. This has been in response to Italy’s populist parties reaching a deal to govern the country together, which has raised concerns about the nation’s future in the Eurozone.
The S&P 500 traded to a high of 2732 early yesterday and regained 1% from Tuesday’spullback. As we discussed earlier in the week, this consolidation is fundamentally and technically healthy. In fact, the S&P has held ground in the face of the Dollar Index rising 1% and the 10-year Note hitting the highest yield since 2011. T
The S&P gave us exactly what we talked about yesterday, a constructive session with buying interest. The Russell 2000 has quietly been a leader for much of the post-correction trade and yesterday it set a new all-time high.