Last trading week the S&P500 futures showed gradual growth. Tuesday’s upward rebound from the level of 1300 confirmed that the level had turned into a support level, increasing the probability of uptrend continuation. Despite the mentioned level 1300, the other support levels are 1306 (50-day EMA), 1250 (option barrier) and 1241 (local low). The resistance levels are the local high at 1343 and the option barriers at 1350 and 1400. The weekly movement range of the S&P500 futures is 33.5 pts. The max range was seen on Tuesday (17.5pts) while the min range was seen on Thursday (5.25pts). Last week’s implied volatility (according to VIX) was low as well (16.44 - 19.78).
The small-scale timeframes demonstrate the formation of another support level. At the level of the max weekly volume cluster (1323).
This week’s economic calendar:
:
There are not many significant news events planned for the week that may influence the market volatility.
· Fed Chairman Bernanke Speaks – April 5th
· FOMC Meeting Minutes – April 5th
· Unemployment Claims – April 7th
Taking into account the level of the expected volatility, at the moment it would be more rational to apply the tactics aimed at buying volatility with entering the market before the major news releases and to abstain from selling volatility.
