Futures have not strayed off much from Friday’s settlement so there isn’t much of a narrative leading into to today’s session. Divergences appear to have switched rolls in the last couple of sessions with the Nasdaq futures taking a back seat to the Dow and Russell futures. All sectors closed in the green on Friday which gives me the impression that bullish participants will likely seek some continuation into the session for today. Friday’s session had low-volume node between 4274~4278 so that price region could lend support in the event that we elect to trade below the ONL into that price band and it will also overlap with support level # 1 from the support levels shown below. The bigger news this past weekend related to the OPEC cartel cutting production by 1M bpd yet again with an intent to keep prices higher so crude prices are nicely up and likely to lend some momentum to the energy names in the Dow. The profiles for the past 2 sessions including the overnight are stacking up neatly. If we liquidate into some form of profit taking expect the first virgin point of control and lower end of the last gap to hold at 4239.50. Below there the only distinctly visible VPoCs’ sit at 4211.50, 4208.75, 4192.75 and 4150.75 so those are likely revisit points if profit taking accelerates.

Optimal methods for intraday trade positioning.

• The long trade will be best if taken while factoring a pullback below the ONL so seek to position between about 4267.75~4279.25 with a tactical plan to scale into your order positioning inside that 12-odd point price band and use 4259.50 as a hard stop while looking to take profits just above 4309.
• The short trade would be a failure by the market to push above R2 yet again for today. This could potentially be a short duration trade lasting about 10~15 with bears attempting to push things back below 4300 so look to take profits right below 4300.
• The economic calendar we only have the final services PMI and m/m factory order both after the open. Note that futures roll into September is set for Monday June 12 while we are 11 days for expiration including today’s session.

Price levels between Friday’s regular trading and overnight sessions (ESM23) 

Pivot points valid through today’s session (ESM23)(YMM23)(NQM23)(QRM23) 

Chart