Tag Archives: SP500 Futures Trading

S&P500

S&P500 Futures Analysis- 01Oct2020

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The S&P500 futures have been recovering in both price and momentum, which indicates a good quality recovery, and 3400 is a very likely target next week. 3350-3360 is a key support level, so traders can keep 3350 as the stop loss on long positions. Traders with higher risk tolerance can keep 3300 as the stop loss for target of 3450-3500, which are S&P500 Resistance levels.

The current recovery rally will become more durable once the 10 day SMA line starts trending up, rather than trending down, like its doing now. This will need the S&P500 futures to stay above 3300 for next 3-4 days. An uptrending 10 day moving average will stabilize and rebuild the market for 3500 target.

However, next 5 weeks will be volatile as we are just 4 weeks from US Presidential Elections. So, traders should keep relatively limited positions, and keep taking profits on all 20-30 point upmoves, because sharp intraday corrections are coming regularly, and they can be used for buying and then selling with 20-30 points gain.

Nasdaq100, S&P500

S&P500 Futures Analysis- 13Sep2020

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This past week saw significant selling pressure in all equity markets, including S&P500 (SPX) and Nasdaq100 (NDX). As we go into the weekend, the S&P500 futures have taken support at their 50 day moving average, which is at 3320.

 

This 50 day moving average should provide initial support in this rapid sell-off, like it has done in the past. If the futures start moving up above 3350, then 3400-3420 are targets, and that’s also the area of resistance, from where the futures failed to cross 4 times last week. Fresh long trades will be available above 3430 for targets of 3480, 3500, 3520. Absolute stop loss on all long positions should be 3300.

Please note that the selling pressure is coming from Nasdaq100 (NDX) index, which is had a nearly vertical run up (parabolic upmove) in August 2020, and that is unwinding now. We have to keep looking at Nasdaq100 to see when and where it stabilizes. For example, the stock of Apple (AAPL), which is a leading weight on all indices, had a parabolic upmove and has been facing strong selling pressure. Thanks.