Tag Archives: SP500 Corrrection

Emini Futures Trading Analysis- 06May2019

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Hello Folks, the S&P500 Emini futures are at 2901.50
Today’s Range: 2983.75 – 2916.50

Nobody likes weekend volatility, but it’s here today morning!
The S&P500 futures fell sharply on Sunday night after US President
Donald Trump shocked investors by threatening to hike tariffs on $200
billion worth of Chinese goods, raising fears of a global slowdown and
halting a relative period of calm in the markets. The S&P500 futures fell
about 60 points overnight after the Wall Street Journal reported that
China may cancel a round of US talks this week after Trump’s comments.

In other words, volatility is back! And we can benefit from it by getting
a suitable entry point. The S&P500 is still in uptrend, and the target of
3000 is intact. Most stop losses would have hit by 2900 level. Today’s low
of 2883 is the level to watch, so the key support level currently is near
2880.

2990 level may get tested once more before futures move up and
test higher levels of 2920 level. This trade is based on that move. And we
have a stop loss 2880, given to us by market action today morning.

[Bonus Trade] Buy at 2880 for Target 2900 with Stop loss 2860.
Trade update: This trade hit target within the same day.

Emini Futures Trading Analysis- 20Mar2019

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The S&P500 Emini Futures are currently at 2825 after making a high of 2858 yesterday March 19, 2019. And they have started selling off on profit-taking pressures since yesterday and the futures have already corrected almost 40 points from their high of yesterday.

This correction was to be expected in a way because the S&P500 Futures have broken out of a very strong resistance level at 2820-2830 that has been prevailing for last 6 months, since October 2018. The breakout from a long-standing resistance is not easy and the futures have done that this week. Now they are trying to come out of that and test one more time whether the support is actually holding at the 2820 level.

So we should not be excessively worried about the correction that is happening today because this is natural to test the resistance levels that we are crossing and to check whether that resistance level has become a support level, which is what it should become. Continue reading →

Emini Futures Trading Update- 24Dec2018

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Hello Folks, the S&P500 futures are at currently 2354. I am confident 2500 will come either by 31 Dec or by first week of Jan 2019, because 2500 is a strong support level, which will break only after testing. 2400 is also a strong support level, and it may come any day. We don’t have any general trades currently because of high volatility. However, we have Optional trades for those traders who want to take much higher risk for a high reward. The following bonus trade is only for traders with some experience and adequate capital. Our Emini Futures Trading Strategy is to buy this sharp correction with stop loss and aim for gains of 50-150 points gain per trade.

[Bonus Trade] Buy at 2350 for target 2500 with Stop loss 2300.

All this correction in Dec 2018 creates an good opportunity for Q1, 2019.
Wishing you Merry Christmas and Happy New Year!

Emini Futures Trading Analysis- 21Dec2018

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The S&P500 futures are at 2426, now 200+ points below their 20 day SMA (simple moving average) of 2641. I don’t remember the last time there was so much divergence! It is not sustainable and very clearly, the futures are deeply oversold. There is an element of shorting and an element of long unwinding in this recent correction in Dec 2018. The S&P500 has lost 375+ points from the start of December – its a record. I think its the worst December for S&P500 since 1929. The market is acting as if we have a recession next year, but its not the case. However, this kind of selling may force the US Fed to think twice about their futures interest rate hikes in 2019.

Our S&P500 futures trading strategy is to keep buying at levels below 2500 for target of 2600 in Jan 2019, because 2500 is a strong support, and the futures will rapidly move up to 2500 from any level below 2500. The minimum pullback target is 2600, within 2 weeks. 2650 is also possible once during Jan 2019.

[Bonus Trade] Buy at 2420 for target 2500 with Stop loss 2380.
Current price is 2415.

 

 

Emini Futures Trading Analysis- 17Dec2018

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Hello Folks, the S&P500 Emini futures are currently at 2555.50, down 50 points for the day. Following are three weekly charts taken at different points of the day today. This is the third red week, and the selling looks mostly done. The futures have tested lower support level of 2530 today, and the futures bounced back from 2530 level, which was the support level established in Feb 2018. The futures are oversold currently, and we can see a good recovery of 100 points to 2650 by December end.

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There is a fear in the market that the US Fed will give hawkish message for interest rates in 2019, but I am not sure about that, given the data points about global economic growth slowing down in parts, and crude oil is reflecting those data points. But that fear and the correction seems overdone for now. Investors should expect recovery in S&P500 over next 2-3 weeks.

[Bonus Trade] In my view, the S&P500 will retest its 200 day moving average at 2765 before end-Jan 2019. That is 200 points above the current price of 2555, which presents a good upside for both traders and investors.