S&P500 futures have been correcting the whole of this past week, and have come to their key support level of 5000. The momentum (CCI indicator) is in oversold area, where maximum price damage/correction happens at a high speed. Fresh long trades will be possible once the momentum (CCI indicator) starts recovering. Upside target of 5200 is visible once price recovery starts. We can expect resistance at 5200 level, which was earlier acting as support.
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.