Here you will find the most recent trade update released today in the Market Dimensions Advisory. This update is showcasing a MDA SnapShot New Entry in the E-Mini S&P Market. To get these updates sent directly to your inbox, please subscribe for free HERE. To see all MDA updates visit my blog page HERE.
Published 2/24/16 8:24 am central:
We saw the negative momentum carry over into the overnight market. Yesterday’s updates had us on the right side of this move from a technical and market awareness standpoint. We hit our 1918.00 target during the day session on our positions and the next target was the Daily Top level @ 1898.00 which we hit during the overnight session. There were several factors to this sell off in my opinion. The oil sell-off is continuing and as I have been saying and basically everybody knows now the strong correlation between these 2 markets. As I pointed out, the Crude “OPEC” freeze play is seeming like it may be falling apart. This is no surprise to me as even if they were going to follow through on this, they were going to keep January production levels, which were pumping at all time highs, so it would still be adding lots of supply to an already oversupplied market. Enough on that. We are also seeing some negative news out of UK with the pound selling off hard on news that UK wants to leave the EU as well as some Asian stocks slipping in the overnight. So this all played a factor in the sell-off. I think we were hitting at levels that would puke the late longs too.
So what are we doing today? It’s unfortunate that we missed most of the move at this point, but we could see further downside on the open if we get Crude oil moving lower. There is the EIA storage report this morning @ 9:30 Central, so many people are eyeing that number on the oil/gas side as well as equity traders. We have levels forming with us looking to sell at near lows @ 1896.50. we spent some time there and just grinded back off and up to 1900.00 so the next test could see some momentum and stops pushing it lower. We also have a buy zone @ 1905.50 level. The 1900 pricing is right in the middle as the 30 Min POC and we could see us potentially moving back to this level throughout the day. The zone just formed so we will see what happens. If we do get long i think we move toward the High volume area on the 30 min chart from 1916-1920.
The Market Action Scanner is showing casing that we will be getting some new Daily levels as well as hourly levels. The short term 240 min and 60 min are red bearish with us moving back into the green daily levels which could go neutral or new levels form. Looking at the odometer, we just were able to get the weekly odometer to touch bullish green as well as the daily is green as shown on the image. We have short term selling moving us into red, but we could see some support here.
I also included a daily chart, for reference of where we are “bigger picture” and the support we will have to get through on the downside. If the market is able to get back above the 1918.00 I believe that is a bullish trigger technically. We could, however, see us grind under 1900 in that support area for some time if we do not budge and bounce back up today.
30 Min SnapShot Chart: (Click for new larger image)
Market Action Scanner: (Click for new larger image)
Daily SnapShot Chart: (Click for new larger image)
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