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.
S&P500 Futures (ES) are moving up today on strong momentum, They were at 4700 today morning, and now at 4750. The strong momentum seen today, almost ensures that 4800 will be tested by end of Friday this week. The current lifetime high of S&P500 Futures is 4808, which was made in Jan 2022, and today, we are in Dec 2023. So full two years have passed since the high was made, and we have gone down to low levels like 3502 in Oct 2022, and come back from there. Given the strong momentum, its 4800 should come, and 4809 should also come, to make a new life time high in Dec 2023.
S&P500 futures have been in a clear uptrend since they crossed 4300 on 2 Nov 2023. As of today, at current price 4750, the S&P500 futures have been gained 450 points from that support and buying level at 4300, within 6 weeks. Its one of the strongest rallies in recent years. Traders can stay long above 4700 for targets 4800-4820. Thanks.
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