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

S&P500 Futures Analysis- 12July2021

Hello Folks, the S&P500 futures are at 4372.
The futures have made a good recovery from the sudden fall last week. Our analysis was showing a recovery to 4230 level, and we shared an Optional Trade based on that analysis for Traders who trade with multiple contracts.

[Optional Trade#2] Update – Target hit at 4325 (30 point gain)
“Buy at 4295 for Target 4325 with Stop 4280”

But the momentum has been falling as the futures moved up above 4350, which doesn’t look like a safe setup for a new long trade. So we will wait and watch this week. On July 16th, there is monthly derivatives expiry, so some volatility should be expected over next 2-3 days. Overall, the setup is getting suitable for a trade.

Our S&P500 futures trading strategy for near term remains same:
“Stay long above 4300 for target 4400”.

The futures have a good support at 4330, and we will try to take a long trade around that level, between 4330-4340. We will get back to you with further analysis after market close today. Thanks.