Wednesday's Market Minute: /ES Stalls At Highs

S&P Futures pushed into new all-time highs earlier this month, but are bulls running out of gas? The /ES is stumbling a bit this morning, as the shortened trading week is making for a rather odd scenario where the contract pushed into new highs at 3959.25 on extremely low volume during Monday’s overnight session, and now finds itself only about 0.5% up from the Feb. 5 close almost two weeks ago.

The Average Direction Index (ADX) shows a low reading near 12, which suggests a trendless environment without much conviction one way or the other. There’s an important support zone to watch to the downside from about 3860 to 3850. This relatively narrow 10-point range represents a confluence of commonly-followed technical indicators, and includes old resistance from the January highs, the Parabolic SAR around 3860, and the 21-day Exponential Moving Average near 3855.

If we do get a bigger sell-off, look for a stall in the downturn near 3734, which is the 64-day Exponential Moving Average. Checking out Volume Profile, there are two larger nodes (which represent price levels with high trading volume) near 3817 and 3690, so these could also be useful levels to keep in mind.

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