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Chart Analysis and News for the Futures Market: Week of 12-18-2016

 

On Friday, the E-Mini S&P closed right at the level where it opened Monday morning, with price consolidating at the 2250 level. Despite the FED interest rate hike and the potential for additional rate hikes in 2017, US stocks did not budge, which can be interpreted as a bullish signal. On Friday, the markets experienced more volatility as news came out that China seized a US vessel, sending oil higher while bonds yields and the dollar traded lower.

More and more analysts are talking about warning signals that a turnaround could be imminent but we cannot ignore the facts and that despite the rate hike, all major benchmarks held their position. The daily chart shows a small wedge formation – a consolidation pattern. We still haven’t seen any real retracements or profit taking over the past 6 weeks. However, traders should focus on momentum as long as price keeps trading at

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Cutting through the Noise – Analyzing Price Action Correctly

 

Over the past few months, we have looked into the different indicators and charting tools that help us better understand price action. Today, we are going to take a step back and focus on the purest form of price and chart analysis: Trend and Wave analysis.

We will explore how the formation of swing highs and swing lows and trend wave analysis can help traders understand the overall market context. Every good chart analysis should start with an examination of trend and wave analysis, and we will show you how you should approach it using the recent price action of Gold Futures and T-Bonds ( 30-Year-old) Futures.

 

The Basics of Trend Analysis

Before we get into price analysis and chart studies, let’s take a look at the fundamentals. Every chart and trend pattern, including range markets – are made up of individual swing highs and swing lows.

A swing high is where a bullish trend

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Chart Analysis and News for the Futures Market: Week of 11/13/2016

 

The US election is now behind us and with the unexpected Trump victory, it is time to assess how the markets view the new presidency and what they expect going forward. At the same time, earnings season is almost over and 76% of all companies beat their earnings estimates and 56% surpassed revenue projections.

The markets are currently focusing on Trump’s plans to increase US infrastructure spending which boosted stock index futures, the Dollar, Copper and the DOW advanced to historic highs. From a macro perspective, the economy seems to be in good shape and if the trust in the Trump presidency keeps up, it’s likely to see price continue its rally. The following is Optimus Futures, LLC analysis and opinion.

From a technical perspective, we can see how the S&P 500 E-Mini found immediate resistance at the 2100 level after price shot up from the initial election overreaction panic.  Obviously, the

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Chart Analysis and News for the Futures Market: Week of 10/23/2016

 

The analysis below is our opinion and any reliance on the numbers is done at your own discretion. There is a substantial risk of loss in futures trading.

So far, of the 80% of the companies in the S&P500 that have reported earnings for Q3 in 2016, 80% beat their earnings estimates and close to 70% exceeded revenue projections. A question going forward during this earnings season is that if the remaining companies fail to beat earnings expectations during a low-interest rate environment, what does this mean for a potential December rate hike?

Low commodity prices put pressure on energy stocks and the S&P500 E-mini futures traded mostly sideways during last week. Price is now trading at an even narrower range between the 20-period moving average at 2140 and the 2100-2020 support area. As indicated, there are lots of uncertainty factors right now with the presidential debate, earnings season and low commodity prices which

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Chart Analysis and News for the Futures Market: Week of 10/03/2016

 

The S&P 500 continued to trade in its narrow range between 2175 and 2125 over the past 2 weeks. Growing concerns about the banking system in Europe, and Germany in particular, did not affect trading activity in the US – yet.

Yellen does not sound too optimistic about a December rate hike and unless we are seeing some more positive economic data soon, which most analysts don’t expect to happen, no additional rate hike is probably the likely outcome.

This week, employment and NFP data will be released and traders will pay close attention to the report, especially with regards to the FED talk. The fear and greed index is at 50 which means neutral and the charts confirm that with the narrow range trading. Market participants are obviously hesitant and waiting for a new impulse and more data. Although

The fear and greed index is at 50 which means neutral and the

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