Emini Futures Trading Analysis- 08Sep2017


The S&P500 Emini Futures are currently at 2463. The futures have been testing various support levels like 2410-2420 to 2440-2450 over the last 2 months, and they are preparing for a fresh attempt to cross 2480. Previous attempt failed and the futures fell nearly 70 points from 2488 till 2420. So the futures are taking their time in testing all support levels in order to launch a fresh attempt to cross 2480 and go towards 2500.

There is a solid resistance/ selling pressure at 2480-2483 level, and it will need a strong push to cross it. There can be no room for selling pressure around 2483 otherwise 30-40 points will be loss rapidly, and all the effort in creating longs will be wasted again. Such an effort may happen in the next 1-2 weeks.

[Bonus Trade]
Buy S&P500 Emini Futures at 2463 for Target 2483 with Stop loss 2443.

Emini Futures Trading Analysis- 21July2017


The S&P500 Emini Futures did a breakout from the 2400-2450 range that was holding the futures for last 6 weeks. This upmove is in line with our previous analysis of 2500 target for the S&P500, and it was only a matter of time that this upmove happened. We have been buying every correction below 2420, and also did a large trade from 2412 to 2438. A few other trades have been started from 2440-2450 level for targets of  2468-2480.

[Bonus Trade]: Buy Emini Futures at 2465 for Target 2485 with Stop 2450.

Support Levels: The futures will remain bullish above 2400, and therefore, 2400 should be the hard stop for all long positions. Of course, will prefer to work with 15-20 point stops in most cases. Traders should avoid long positions below 2400 level. The futures have strong support at 2350 and 2250, and any sudden large correction should find support between 2350 and 2250. Prediction of support levels in large correction will be futile. For trading purpose, we will wait for buying to come in, and some short covering indication, before we take a new trade at lower level.

Technical Analysis of S&P500 Emini Futures Weekly Chart

Commodity Channel Index (CCI) Indicator: CCI (141.66) recently crossed above the buy line into bullish territory, and is currently long. This long position should be liquidated when the CCI crosses back into 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 (141.66) is currently long. The current long position position will be reversed when the CCI crosses below zero. Adding bullish pressure the market just reached a 45 bar new high.

RSI Indicator: RSI is in neutral territory (at 72). 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 (at 72), but given the 45 bar new high here, greater overbought levels are likely.

MACD Indicator: MACD continues to be in bearish territory this week too, but has not issued a signal here. MACD generates a signal when the FastMA crosses above or below the SlowMA. The long term trend, based on a 45 bar moving average, is UP. The short term trend, based on a 9 bar moving average, is UP. MACD is in bearish territory. However, the recent upturn in the MacdMA may indicate a short term rally within the next few bars.

Slow Stochastic Indicator: This is in overbought territory (SlowK is at 91.95); this indicates a possible market drop maybe coming. The long term trend is UP. The short term trend is UP. Even though the stochastic is signaling that the market is overbought, don’t be fooled looking for a top here because of this indicator. The stochastic indicator is only good at picking tops in a Bear Market (in which we are not). Exit long position only if some other indicator tells you to.

Open Interest Indicator: Open Interest is in a downtrend based on a 9 bar moving average. While this is normal following delivery of nearer term contracts, be cautious. Decreasing open interest indicates lower liquidity.

Disclaimer: The above analysis is meant solely for the understanding of technical analysis of the S&P500 Emini Futures. It is not meant to provide any investment advice.

Emini Futures Trading Update- 14July2017

Hello Folks, the S&P500 Emini futures closed at 2456.50
Today’s Range: 2442.00 – 2461.25

The futures have broken out of the 2400-2450 range, which had in been in place for last 6 weeks. As I stated in various emails earlier, we have a long view with target 2500, so the futures are moving as per analysis. The futures have tested 2420 and 2430 levels multiple times in last 6 weeks, so crossing 2450 today is not a surprise at all. However, a retest of 2450 is likely before further upmove happens. The futures faced selling pressure at 2460 because of profit taking ahead of the weekend.

Traders with 1-2 contracts: There is no new trade as of now.
The set up is not reliable, and 10-20 point stop loss can get hit.

Traders with 5-10 contracts:
The following Optional/Tactical trade (from Wed, July 12) is currently on.
“Buy Emini Futures at 2440 for Target 2480 with Stop loss 2410.”

[Bonus Trade] Here is a new optional/tactical trade.
“Buy Emini Futures at 2455 for Target 2468 with Stop loss 2442.”
This trade can be done with 1-2 contracts. Thanks.

Emini Futures Trading Analysis- 07July2017


The above weekly chart of S&P500 futures show clear resistance at 2450 level, which the futures have not been able to cross in last 6 weeks, despite regular attempts.The futures have closed this week in the middle of the 2400-2450 range, which has been holding up in recent weeks. The futures have strong support at 2350 and 2200 levels. While 2350 may not hold in case of strong selling pressure, we can expect 2200 to hold despite selling pressure.

Technical Analysis of S&P500 Emini Futures Weekly Chart

Moving Average Indicator:  The market has been extremely bullish in recent weeks, however currently the market is consolidating at 2420-2430 level for last 6 weeks. This is bullish and positive for the long side trades. Any dips towards 2400-2410 can be used for buying. In fact all rates below 2420 are good buying opportunity, because 2440-2445 is most likely to come in July again, giving 20-25 points gain.

Momentum Indicator: Momentum (42.00) is above zero, indicating an overbought market. The long term trend, based on a 45 bar moving average, is UP. The short term trend, based on a 9 bar moving average, is UP. Momentum is in bullish territory and upmove is likely towards 2440-2450 by July end. Continue reading

Emini Futures Trading Analysis- 26May2017


Emini Futures Trading Strategy:  The S&P500 Emini Futures have bounced back from 2350, and crossed 2400 decisively last week. Now the target is 2450. There will be some resistance around 2420-2430 level, and above that 2450 can come within 1-2 trading sessions. The S&P500 Emini Futures Trading Strategy is to stay long, and buy any correction towards 2400, because 2400 will act as a good support now. The real strong support is at 2380 level. However, fresh long positions should be created only above 2400 level with max stop loss around 2380 level.

[Bonus Trade] Buy S&P500 Emini Futures at 2410 for Target 2450 with Stop Loss 2390. Continue reading