Day Traders – futures are higher this morning but still inside yesterday’s range. As traders speculate on their impact, global headlines continue to drive the price action. The Fed’s hawkish stance on interest rates could change with global strife and its effect on consumer, business, and investor psychology. The January low is still secure at this writing,
Premarket indications are not showing imbalance in either direction at the moment. Trade later rather than earlier. I am mindful of the larger “h” pattern, but it is hard to peg a bull/bear level today, given yesterday’s wide range. Watch where the value area develops in today’s session as it may provide a clue to further direction.
The 4300 level filled in with positions yesterday and is now the Key Gamma Strike on the board (down from 4400). We see 4200 as the Put Wall, down from 4300. Lower Gamma Strikes speak to a general trend of the options market accepting and repositioning around lower prices. Overhead resistance is at 4350, then 4400. Support lies at 4300, then 4265.
A.F Thornton