Trader's Daily Notebook: Will Snapchat Follow Facebook's Path?

Wednesday's regular-session E-Mini S&P 500 futures (Es) auction turned out to be an inside day, where price failed to break outside the prior session's range. Volume came in around 820,000 contracts, and the range hit 7.75 handles. The bottom line is price is still holding above the upper 2380s (a pivotal area discussed over the past few days), and we're still closing above all short and intermediate timeframe moving averages. Price momentum may be nonexistent, but responsive buyers remain active and motivated any time price displays even an inkling of weakness. 

Daily S&P 500 Futures Volume Profile
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Several readers asked if I had any thoughts on last night's collapse in shares of Snapchat (SNAP) , so here goes. I'm not a Snapchat user. Truth be told, I know next to nothing about the technology or service. Unfortunately, I'm not a Facebook (FB) aficionado either. And frankly, I never thought Facebook would evolve into such a technological powerhouse. In a nutshell, I am not a visionary when it comes to social media. So while many may be able to say they spotted the cracks in Snapchat's business model early on, I'm unable to make that claim. On the plus side, I've got my charts. And they do a pretty good job at showing supply-and-demand imbalances. (Facebook is part of TheStreet's Action Alerts PLUS portfolio.) ...490 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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