S&P 500 Support Levels: September 26, 2017

Amid nearly unprecedented levels of global and domestic political tension, U.S. equities have held strong. Trade of prominent U.S. indices are currently above the 38% retracement level of September’s range. This is a bullish indicator and one that is a bit surprising.

This morning’s pre-cash open has brought the Redbook releases, a measure of U.S. retail:

Event                                           Previous               Actual

Redbook (MoM, Sept. 18)              0.1%                   0.0%

Redbook (YoY, Sept. 18)                3.6%                   4.0%

Redbook numbers are not typically market movers. This batch doesn’t show us much, aside from the long-term growth in retail.

This Week’s Key Levels For E-Mini S&P 500 Futures

December E-mini S&P 500 futures remain in bullish territory, not far from all-time highs.

December E-mini S&P 500 Futures, Daily Chart

As we move further into the trading week, a nice area of support may shape up for a long trade:

• 38% retracement of September’s range at 2483.00

• Bollinger Band MP 2480.25

• 20 Day EMA at 2486.00

• 13 Day SMA at 2466.75

I like a defined support area. With the area between 2483.00 and 2466.75 littered with technical levels, we may be in a good position to capitalize upon a retracement.

Bottom Line: Unless there is a major shift in market sentiment, this market is going to need some time to set up. For today, a long from 2483.00 is a good spot to get in on the strength of this market. A 1:1 entry with a stop below the 50% level at 2475.50 is the scenario for an intermediate-term bullish swing trade.

We are closing September with a bang. Be sure to check the trading signals page for ideas facing forex, futures, and cryptocurrencies!