Emini Futures Trading Analysis- 01Apr2020


Hi, the S&P500 futures are at 2459.00, down 110 points or -4.30%
Today’s Range: 2453.50 – 2563.00

The futures were at 2611 when I mailed you yesterday,
and mentioned this in the market levels.
“- Safety will start above 2650 (we are almost there!)”

But the futures could not even go near 2650!
They reached 2635 and started facing selling pressure, and they are now below 2460, down 170 points since yesterday’s high. Its not hard for the futures to move up/down 30 points in the current market conditions with high volatility, but they could not even approach 2650 yesterday. It means the market is not yet ready for become safe and stable, which means more correction, till we get better conditions. In regular market conditions, the S&P500 futures can stay flat for a couple of days, but that’s not possible now. If the market can’t go up, it has go do down without any waiting. Continue reading

Emini Futures Trading Analysis- 25Mar2020


S&P500 Futures Technical Analysis: S&P500 futures closed today at 2467, and above their 10 day SMA for the first time since 20 Feb 2020 (20/02/2020) — it was a very eventful date, from where this entire major correction started. 2200 is the support for this week, and 2600 is the upside target. 2500 was the first target, which has been achieved today. The volatility is still very high to trade with small stop losses. Today is the first day in last one month, when the futures have done two consecutive green days.

S&P500 Emini Futures Trading Strategy: Traders looking to trade for 100-120 points gain can with can stay long above 2400. Today’s low was 2387, so 2380 is the absolute stop loss on any long positions. The futures bounced back from 2174 on Monday, 23 March 2020. Therefore, below 2170, fresh breakdown can happen. Keeping 2400 as stop loss will protect from any major downsides. We can’t be sure if a bottom has been made in the markets, because the coronavirus cases are still increasing. So we have to keep position size very small on any trade.

Emini Futures Trading Analysis- 24Mar2020


Hello Folks, the S&P500 futures closed at 2380.00
Today’s Range: 2216.00 – 2387.75

It has been a week since the last mail, but we were all watching the unprecedented volatility in the futures. Trading in such conditions is like going into a tsunami with a raft, and there is no positive outcome possible without taking sizeable risk. And that’s not possible in the structure of this service, where we want to take trades with upto 20
points stop loss. In the current conditions, any trade with less than 50 points stop loss
does not have any chance.

Key Levels for S&P500 Futures trading:

  • Basic stability will start above 2500.
  • Safety will start above 2800.
  • Reliable trades with low volatility will come above 3000.

The futures are very likely to test 2500 this week, on the back of the stimulus package being planned by the US Govt. Currently at 2380. So 130 points upside is visible, but downside can be 100-150 points, which makes it very difficult to capture it as a futures trade. Continue reading

Emini Futures Trading Analysis- 11Mar2020


The S&P500 futures have closed at 2741, down 4.50% for the day, and wiping out all the gains of yesterday. The selling pressure is relentless and even small gains during the day are meeting aggressive selling. The futures are now 330 points below the 200 day moving average, which is a lot of damage.

Our S&P500 Emini Futures Trading Strategy is to wait for this intense high volatility to subside, and for the futures to show a couple of green days, not like one green day followed by deep red day! Clean trades with low volatility will be available above 3060.

There is also a recovery trade of 250 points from 2800 to 3050, with 2700 as Stop loss.

Emini Futures Trading Update- 24Apr2018


Hello Folks, the S&P500 Emini futures are at 2635.75
Today’s Range: 2616.25 – 2688.50

The futures tried to cross 2680 (the known resistance level) but failed, and a series of supports broke, mainly 2650 and 2630, with cascading stop losses. The market is talking about the weakness in FAANG stocks, but it could have been something else too. The set up was getting weak below 2680.

Please refer my mail from last Friday: “The futures may test both 2650 and 2690 in the coming week. The support at 2600 should hold.” Today 2650 was broken but 2600 has held. The probability of 2600 level breaking is low, and even if it breaks, the futures may bounce back within an hour. So we can continue to work with 2600 level as the absolute stop loss.

Traders with 5-10 contracts:
Here is a new optional trade that can be done with 1-2 contracts.
“Buy at 2630 for Target 2666 with Stop loss 2600”

The futures have now lost 80 points from the 2712 level, where we first saw weakness creep in on a bullish set up. We will do a new trade once market stabilizes. Thanks.