S&P500 Emini Futures Trading Update- 13Jan2016

  • The S&P500 Emini Futures have successfully tested 1900 support levels 3 times during the last 3-4 days, which should give 60-70 points gain above 1900 level before next selling pressure comes. There is a long trade trade opportunity above 1940 for potential targets of 1960-1970. However, it is not clear how long the buy signal will last. So traders have to remain very cautious.
  • As mentioned in previous posts, as long as S&P500 Index is below 2000 this year, there will be constant bearishness in the market from whatever factor that catches the market’s attention for the day: China, Crude, Currency etc.
  • Once the S&P500 Index closes above 2000 (futures maybe around 1993-1995 then), a fresh long trade can start with 2040-2050 as likely targets. That might be a higher quality long trade compared to the current opportunity from 1940 to 1970, with less selling pressure or chances of sudden overnight reversal.
  • On the other hand, if 1900 level breaks down for any reason, then the previous low of 1870 may not hold this time, and we may see newer low. Traders can become short below 1900 with stop at 1910.

Buy S&P500 Emini Futures for Target 2055

S&P500 has been correcting whole of last week and has successfully tested key support of 1990 in the process, and rebounded from there. Very good. Meanwhile, Crude Oil has stabilized and Eurozone is likely to do something positive/constructive for their economy going forward. Today’s correction is a buying opportunity, because there is sufficient fear prevailing in the US market to warrant fresh buying of the S&P500 Emini Futures. Here are the S&P500 index levels for this positional trade which may play out over next 3-5 days.

  • Buy @ Current Price = 2010
  • Target = 2055   //   Stop Loss = 1990
  • Risk Reward Ratio = 45 points reward / 20 points risk = Good.

Please Note: This single trade can give us 45 points, which is the average trading gain of some months. Hence its worth going after with a moderate position, i.e., not full loading, but sufficient loading to make the target 45 points profit material enough to make Jan 2015 a great month to start the new year. As always, for any questions, please contact us.