Futures were soft when they began trading last night but have since firmed and are up a decent amount to start the day. After a strong week you would expect them to do just that. The question is, will there be any follow through or will one want to fade the early strength.
The fact that we are at resistance coupled with Monday morning strength certainly has me not wanting to make additional purchases early. I will likely look to short strength early for a trade when the opportunity presents itself. Tread carefully here early would be my thought.
As to what happens if the early strength sticks, there you have to be more concerned regardless of whether you are positioned bullishly or bearishly because a price that sticks into the close above resistance is going to make it might hard to get out or in. I seriously doubt this happens but one has to consider all possibilities. As is many times the case, today's trades are quite important with respect to short term direction.
A pullback toward the 1180 on the SPX would be ideal this week. Let's see if that's what develops.
The fact that we are at resistance coupled with Monday morning strength certainly has me not wanting to make additional purchases early. I will likely look to short strength early for a trade when the opportunity presents itself. Tread carefully here early would be my thought.
As to what happens if the early strength sticks, there you have to be more concerned regardless of whether you are positioned bullishly or bearishly because a price that sticks into the close above resistance is going to make it might hard to get out or in. I seriously doubt this happens but one has to consider all possibilities. As is many times the case, today's trades are quite important with respect to short term direction.
A pullback toward the 1180 on the SPX would be ideal this week. Let's see if that's what develops.
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