Emini Futures Trading Analysis- 11Oct2019

Hello Folks, the S&P500 futures are currently at 2978.00
Today’s Range: 2941.25 – 2993.00

The futures have made a big move today after creating a good base in the last two days. Today’s upmove is looking reliable coming on the back of a very good setup made in the last 2 days. But we have a weekend coming up, which has a tendency to create gap-ups and gap-downs by Monday morning, so I am analyzing our next long trade here.


Please Note: There is a major resistance currently at 2976.
We need daily closing above 2880 for clean upmove to 3020-3030 level.
That will be a reliable long trade.


Our S&P500 Trading Strategy has been to stay long and buy all corrections above 2850 level, and that has given good gains in the last 3 months.

[Bonus Trade]
Buy at 3000, for Target 3023, with Stop loss 2980″.

Market Notes:

  • The futures were volatile in the early part of this week and on 8th Oct 2019, the futures suddenly dipped below 2890 from 2920-2930 levels in pre- market around midnight UK time, thereby taking out the stops of most traders in the market, and then bounced back to 2920 levels before market open.
  • We were in the market at night on 8th Oct, and saw this live, and quickly bought futures at 2885-2890 levels with 2850 Stop loss, and were able to sell them after 5 hours at 2920-2925 levels, all of this in pre-market trading! But those are high speed, dynamic trades with 50-50 chance of success, which can’t be used as General Trades for all traders based in different locations and time zones.
  • Our larger traders who do Optional Trades with 1-2 contracts (and General Trades with with full volume of Emini contracts), could use our default trade at 2900 once again this week. Our default trade since Aug 2019 has been: “Buy at 2900 for target 2930 with Stop 2880”.

Next Steps: Today is looking a clear case of S&P500 Breakout Trading. There is no immediate trade as of now, but please stay alert because a new trade may come if 2880 is crossed successfully today on closing basis. Thanks!

End of Day Update: The futures went up till 2993 and were trading above 2980 most of the day, but could not close above the major resistance of 2976! This creates fresh downside possibility of retest of 2950 next week, but the upside target of 3000+ can also come in the next 1-2 weeks. So we should aim to buy the corrections with a stop loss of 2930. Its good that we did not buy at 2985-2990 levels during the day otherwise our stop loss would have got hit by end of day. Now we just have to select a fresh entry point for taking a long position next week.

Following is the weekly chart of the S&P500 futures. The last two weeks have shown strong defense of lower levels below 2900 and it has set up the stage for testing 3000-3050 levels. Thanks.


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