Friday's Market Minute: Breakout For The Bulls

Equity index futures seem to have finally ended a month of range-bound trading yesterday with an upside breakout.

S&P Futures closed solidly above both the persistent resistance zone near 2,940 as well as the 50-day SMA. For the /ES, technically-minded traders likely will be watching for a push above the 3,000 level as a sign of a continued upswing, judging by the one-year Volume Profile study and simply that it seems to be a psychologically important price level for many participants. The 2,940 level is once again a noteworthy area to watch, but this time as a bolster to the downside according to the adage of old resistance becoming new support.

Conversely, WTI Crude Oil futures are still locked between 50 and 58, despite what seemed like a promising continuation of Wednesday’s upward surge. Despite being up over 3% on the day at one point, the /CL contract once again was unable to manage a close above the 50-day SMA after the EIA report showed a 4.8M barrel draw – though it did eke above the 200-day SMA. With /CL down about 1.5% this morning, it looks like oil traders could be in for continued chop.

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