The S&P500 futures closed at 3114. It was a big green day, after a big red day. These are all indicative of the market trying to adjust itself. A retest of 200 day moving avg (3068) is sure to come tomorrow, 5th March. Traders should take profits around 3100 and wait for lower levels like 3050 to consider a new trade. 3050 should provide short term support, but 2970 is the real support on the downside.

Major resistance on the upside is at 3150, and major support on the downside is at 2850. So there is a 300 point band, in which the futures can decide their direction.

Our Emini Futures Trading Strategy is to be care careful, and take very few trades after careful observation. The market has not yet stabilized, so our position size must be small, to avoid sudden large loss.

[Bonus Trade]
Sell at 3090 for Target 3040 with Stop loss 3120.

This trade can give 50 points gain for 30 points risk. Unfortunately, in current market conditions, we can’t do any real trade with less than 30 point stop loss. 10-20 points are going away rapidly as if they are nothing. And support and resistance levels are also widely placed, as the S&P500 index is trying to navigate this period of high volatility.

Hello Folks, the S&P500 futures have closed at 2989.25
Today’s Range: 2854.50 – 2995.50

It was another wild day in the market, and 2850 level got tested intraday.
Just last week, the futures hit 3395 (nearly 3400) and to see 2850 level
was almost unreal experience, with 550 points fall in 1 week.

But today’s closing on both S&P500 Emini futures (ES) and Nasdaq Emini
futures (NQ) is encouraging. Its the first time in last 8 days that the
futures showed some strength, and today’s price action by end of the day
was very good. I almost forgot that the futures can move up with strength,
because for last one week, the futures were unable to break out of even
minor intraday negative patterns, which the futures usually take out in
within 1-2 attempts. By end of today, the futures have shown strength.

The immediate upside target for S&P500 futures is 3050-3060, which is the
200 day simple moving average (SMA), but its difficult to create a trade
with a Stop loss, because the futures can fall 50-100 points and then go
up. The only tested support currently is 2850, which is 140 points below,
very far away. And 20-30 point stop loss won’t work in current market.

There are a couple of Optional Trades that I am evaluating.
(a) Buy at 3010 for Target 3060 with Stop loss 2950
(b) Buy at 2970 for Target 3060 with Stop loss 2920

I will try to construct an Optional Trade and share with you by tomorrow
evening, after completing my market analysis. Thanks. Continue reading →