Friday's Market Minute: What To Watch For Today

Equity indexes are little changed as we wrap up this week, with S&P 500 futures in the premarket session logging a meager gain of less than 0.5 percent since Friday’s close. Trading has been as choppy and range-bound this week as it was dramatic and directional during last week’s sharp upswing. Closing prices of the /ES since Monday have ping-ponged between 2,880 and 2,900 on weak volumes, leaving both bulls and bears anxiously watching for a breakout and a subsequent clue for the market’s trajectory. Upside resistance remains near the contract’s all-time highs at 2,961.25, whereas bears are likely watching for support near 2,815.

Geopolitical risks and the global oil market also must be considered as another possible catalyst for equities in light of the recent attack on two oil tankers in the Gulf of Oman. Crude oil futures seem to have stabilized for now near $52, despite an International Energy Agency report lowering the forecast for global oil demand for the second month in a row. Many traders will be eyeing the $50 level as an important support threshold for oil prices going forward.

Today’s close will be an especially important time to watch price action as traders decide whether to hold positions over the weekend, which may finally give us some answers about the market’s direction.

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.