Well, the bears have taken control in the E-mini S&P 500 and WTI crude oil futures contracts. Crude oil is currently in a free fall towards $47.00 and the E-minis are trading beneath Wednesday’s low. As we roll into the second half of the U.S. session, there are a few things to watch that may create some opportunity.

E-mini S&P 500 Futures

Yesterday’s long call turned out only moderately positive before being stopped out. This morning’s action in the E-mini S&Ps has been a continuation of that bearish sentiment.

The S&Ps Are Grinding South

The skepticism in U.S. equities is being attributed to concerns over upcoming debt-ceiling legislation. Earlier, President Trump called out Republican leadership on Twitter, stating the current situation “a mess” and alluding to a governmental shutdown.

It feels like investors are becoming weary of the long-term bullish calls for U.S. equities. From an intraday standpoint, key support levels at 2430.75 and 2424.50 may come into play.

WTI Crude Oil Futures

Well, my long position call for October WTI crude from $47.75 has turned out to be a clunker.

October WTI Crude Oil Futures 5 Minute Chart

We saw some positive price action (+19 ticks), but ultimately sellers won the day and knocked the bottom out of the market. While the stop loss looks to have saved some additional anguish, a loser is a loser. Trades like this emphasize the importance of money management.

Moving forward, the WTI market has the potential to base around $47.25-00. However, I will have to see how the rest of today shakes out before setting up another entry.

All in all, this market is weak. A test of last week’s swing low of $46.62 may be coming as we move into the U.S. session close.