S&P500 Futures Analysis – 27Aug2021

The S&P500 futures have closed today at 4507.50, which is a new lifetime high closing. Day high was 4510, so the closing rate is near day high, and a sign of strength. The futures had a brief correction but bounced back from 4503, so 4500 level was defended today afternoon. As per our analysis, targets of 4520 and 4530 should come next week.

Once the S&P500 futures recovered above 4400, they haven’t looked back.
As mentioned earlier, our S&P500 futures trading strategy is as follows:
Above 4400, our target is 4450 (achieved),
and above 4450 closing, 4500 is the target (achieved).

S&P500 Futures Analysis – 03Aug2021

Hello Folks, the S&P500 futures are at 4408. Today morning, the futures dipped sharply till 4365, and then bounced back to 4400 within 2 hours, giving 25 points gain on the Bonus Trade given last evening (“Buy at 4375 for target 4400”). The study of the trading range that I shared in previous mail helped in doing this trade correctly, buying at the lower end of the trading range for reliable retest of 4400, which happened as expected.

Choice of 4360 stop worked well. Even 4365 was not broken (it escaped very narrowly), but anybody with 4370 as Stop would have lost their position just before the reversal rally to 4400 happened. I wasn’t sure if 4370 will get tested, otherwise we could have got 5 points more in this trade by buying at 4370. Now we will wait for some stability to come after today’s sharp moves.

S&P500 support levels are at 4360-4370, which was successfully tested again today. Our S&P500 futures trading strategy for this week is to stay long above 4400 for target is 4450, and its ON currently. I will share further analysis and next steps towards market close. Thanks. Best Wishes, Shankar