Hello Folks, here is our latest US Market Report dated Monday, Oct 12, 2020. This report covers S&P500 futures, Nasdaq futures and WTI Crude Oil futures, and our trading strategy for each of them. Thanks.
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.