Emini Futures Trading Analysis- 22July2019

Hello Folks, the S&P500 futures are currently at 2989.00
Today’s Range: 2974.75 – 2993.25

The futures closed below their 20 day SMA on Friday, 19th July, which created a short term weakness, but the futures have shown some strength today by closing back above their 20 day SMA. This kind of turnaround on the 20 day SMA does not unusually happen so fast. So we want to be very alert at current levels.

The futures have been giving divergent signals since last few days, and any new long trade can be considered above 3000 only. At the current level of 2989, there is a 50-50 chance of retest of 2950 level.

So, this is a zone of caution, as the market can move in either way by 40-50 points rapidly. If the futures start going down, then 2930 is the downside target, which also aligns with a head and shoulder pattern that would be developing below 2770.

The S&P500 trend is still clearly up, so any weakness here is more likely to be a short term weakness, which will reverse by September 2019.

Trade updates:
Trade#4 of July 2019 (target hit on 15th July)
Buy at 2970, Target 3020, Stop loss 2980 (trailing stop loss)

As of now, there are no new trades. If we get a correction here, then we will have to be cautious for next 3-4 weeks. We will mail you with more notes tomorrow. Thanks.





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