Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday May 25, 2016
For 2016 I would like to wish all of you discipline and patience in your trading!
Strong trend day today on both indices going up and gold going down, prompts me to share a piece I have shared in the past about recognizing the different type of trading days (both markets above experienced type 2 trading day today):
- My opinion is that there are 3 main types of trading days.
- Most common is two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought /oversold indicators.
- Strong trending day, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend
- Slow and/ or choppy trading day – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in. Many times, no trading is better than bad trading during these type of trading days….
- Good question is how can one asses what type of trading day we will have while the market is still trading….I am doing some work about it and will be happy to hear feedback via email but here are some initial observations:
- Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session ( primary session is when the cash/ stock market is open)
- Mondays have the highest chance for trending days
- The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
- If the first 30 minutes have good volume, better chances for type 1 or type 2 trading days.
- low volume during first 30 minutes can suggest a choppy (type 3 trading day)
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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|Contract June 2016||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||June Gold||July Silver||July Crude Oil||June Bonds||June Euro|
|Resistance 3||1270.0||16.63||50.57||166 11/32||1.1302|
|Resistance 2||1261.4||16.54||49.75||165 21/32||1.1268|
|Resistance 1||1244.6||16.39||49.28||164 26/32||1.1207|
|Support 1||1219.2||16.15||47.99||163 9/32||1.1113|
|Support 2||1210.6||16.06||47.17||162 19/32||1.1079|
|Support 3||1193.8||15.91||46.70||161 24/32||1.1018|
|Contract||July Corn||July Wheat||July Beans||July SoyMeal||June Nat Gas|
GfK German Consumer Climate
German Ifo Business Climate
German 30-y Bond Auction
Goods Trade Balance
Belgian NBB Business Climate
Flash Services PMI
Crude Oil Inventories