The S&P500 futures (ES) have been holding above their 10 day moving average, which is currently at 4590. As long as they are above this level, the immediate target is 4630. The momentum indicator (CCI) shows the momentum is gradually falling after the recent spike. The S&P500 futures are in uptrend, and there is a resistance at 4630. The support is at 4580, and therefore 4580 should be the stop loss on all long positions.
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