Category Archives: S&P500 Futures Trading

Emini Futures Trading Update – 13Apr2016

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Wednesday, April 13, 2016, 9.45am, New York – Hello Folks, the futures are currently at 2069. For Trade#2 of April, our target of 2067 has been hit successfully today morning. I was expecting it to come by Friday as mentioned in the email last evening. But the momentum is strong and our target got hit today morning itself. This completes Trade#2, with 28 points gain from.

Trade#2 of April 2016 (completed)
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Buy at: 2039
Target: 2067 (hit on April 13, 2016)
Stop: 2030
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This trade has moved fast, and its good we took this immediately after our Stop Loss on Trade#1. We will wait for the index to take a breather after the hectic 40 point upmove from 2030 to 2070 in the last 2 days since Monday morning, and then decide our next trade.

[Emini Futures Trading Strategy] The S&P500 has strong resistance at 2075-2080 level, which translates to about 2070-2073 levels on the SPX/ES futures. However, the S&P500 index is in positive buy zone above 2058, which translates to about 2050 level of the futures. If the S&P500 index goes below 2000 for any reason, all longs must be closed. Of course we will be having predefined Stops much above 2000 level.

[Bonus Trade] Large Traders with 5-10 contracts: You may Sell 2-3 contracts at 2068, for Target 2058, and Stop 2075. This is a tactical trade that aims to benefit from the inevitable profit booking that may come today or tomorrow. Thanks & Best Wishes.

Emini Futures Trading Update – 12Apr2016

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spx-daily-chart-12apr2016

Technical Analysis of S&P500 Index Futures

RSI Indicator: RSI is in neutral territory. (RSI is at 60.57). This indicator issues buy signals when the RSI line dips below the bottom line into the oversold zone; a sell signal is generated when the RSI rises above the top line into the overbought zone. RSI is somewhat overbought (RSI is at 60.57). However, this by itself isn’t a strong enough indication to signal a trade. Look for additional evidence before getting bearish.

CCI Indicator: CCI (57.58) is in neutral territory. A signal is generated only when the CCI crosses above or below the neutral center region. CCI often misses the early part of a new move because of the large amount of time spent out of the market in the neutral region. Initiating signals when CCI crosses zero, rather than waiting for CCI to cross out of the neutral region can often help overcome this. Given this interpretation, CCI (57.58) is currently long. The current long position position will be reversed when the CCI crosses below zero. Continue reading →

Emini Futures Trading Update – 24Mar2016

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The futures are currently at 2016. The S&P 500 Index is at 2025, so futures are at 9 points discount. The index has support at 2015, about 10 points below current price, failing which the index can go 1990, which is 35 points below.

So we are waiting to see if the support levels will hold, and if they do, a new long trade can be done, otherwise below 2000, short trades also have equal probability of success. The futures are not suitable for long trade currently. The positive zone for long trade is above 2030 in futures.

  • Traders with 1-2 contracts: We do not have a new trade as of now.
  • Traders with 5-10 contracts: You can sell 1-2 contracts at 2017 for Target 2005 and Stop at 2025. This is an optional trade.

 

Emini Futures Trading Update – 18Mar2016

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sp500-emini-futures-weekly-chart-18mar2016

S&P500 Technical Analysis – for Week of 18 March 2016

The above weekly chart of S&P500 Emini Futures indicates a triple bottom at 1850, and hence a strong bounce back, which has the strength to go all the way till 2100. We have got 5 green weeks back to back, which is one of the most powerful rallies in recent years. Above 2100, the market opinion will be very divided, and there will be enough people willing to short, and any further advances above 2100 will need good support from strong corporate earnings and global macroeconomics data.

Moving Average Indicator: The market is very BULLISH. Everything in this indicator is pointing to higher prices: the fast average is above the slow average; the fast average is on an upward slope from the previous bar; the slow average is on an upward slope from the previous bar; and price is above the fast average and the slow average. Market trend is UP as long as the S&P500 index is above 2000 level.

Momentum Indicator: Momentum (138) is way above zero, indicating an overbought market. The long term trend, based on a 45 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. Momentum is indicating an overbought market. However the market may continue to become more overbought. Look for further evidence of weakness before getting bearish here. Momentum is likely to increase above 2050 on S&P500 index. So avoid short positions above 2050. Continue reading →

Emini Futures Trading Update – 01Mar2016

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Hello Folks, the futures closed Feb 29 at 1929 but there are likely to open higher today on March 1st. We had no trade on the last day of Feb. We shall start March from today. Global markets are positive and we had good gains in Asia today.

On the S&P500 futures, there is support at 1930-1940 levels, which can help the futures move up towards 1970 level. In fact our last successful trade was from 1950 to 1968. So this zone has been tested by the market, and once market conditions are suitable, 1970 will be crossed. As of now, the major resistance is around 1990-2000 level. However, the base built over last 2 months (Jan, Feb 2016) can help in going higher IF global market conditions are positive. sp500-emini-futures-daily-chart-01mar2016

This is election year in the US, and we should be prepared to hear high decibel messages, and ongoing references to banking and healthcare industry. There is no new trade as of now, and we will send an update after the US markets start. Thanks.