Day trading  – Buyers are weak in morning trading Sellers exhausting as S&P500 emini futures hitting support as earnings are revealing a weaker business economoy.

The S&P500 emini futures contract hit support this morning at 1424.25 and price has been moving in a consolidated range from 1424 to 1430. A 6 point range on light volume.

Support for this session is 1424 with another short term support coming in at 1420. Long term support will be at the next move down to 1415, then 1408 to the psychological support of 1400.

Resistance in the Short term is 1430 to 1431 then our next upside target of 1437.25 coming close to the 200MA and the 50MA which if it crosses in this position is known as the golden cross in the short term. Next resistance is 1448 which would give us a a new lower high if it turns.

Watch as this pattern gets tighter and if earnings keep coming out with falling sentiment, then we could see this pattern break to 1400 and a probable continuation to 1386. In the long term the market is looking for the next support for a bounce to break through this resistance at 1465-70. Probably into the end of November as we will be looking for a great bonus season for Wall Street. (which is not located on Wall Street by the way).

Day trading trade of the day, caught this bounce off of support as buyers came in to test 1425 and took direction from sellers in short term.