S&P500 Futures Analysis- 05Apr2024

The S&P500 futures had a sharp sell off yesterday on 4th April 2024, and closed below 5200, at 5297.

The S&P500 futures are now also trading well below their 10 day Moving Average (SMA), which is near 5270, and it will act as a resistance now. So this is a not a safe setup for new long trades, but the futures are likely to recover and retest the 10 days SMA in the next 1-2 days.

Therefore, we can expect the S&P500 futures to bounce back to at least 5250-5260, and go near 5270 to test the 10 day SMA. So the current rate of of 5218 presents a tactical buying opportunity for large traders to create a small long position. But this is not suitable for smaller traders who trade with fewer contracts.

Update: The The S&P500 futures bounced back to the levels of 5250-5260 today itself by end of day. However, the they are still below 10 day SMA and the momentum indicators are still in a weak position, so there is no new long trade.

Share this:

Leave a Reply