Hello Folks, the S&P500 futures have closed at 3134.50
Today’s Range: 3132.75 – 3149.25

The futures moved up rapidly on Friday, Dec 6th, from 3120 to 3150 and the quick move made it difficult to create a suitable trade and share with the trading group. By the time the futures were at 3130, the trade was not suitable anymore because stop loss would still have to be 3100.

There is a strong resistance at 3140-3150 level, and we have to see how the futures navigate it. Above 3150, the next target is 3180, and we will try to capture a part of that upmove if it happens.

The candlestick pattern of last week made a bullish recovery, but it leaves a lot of volatility for following week, which is this week. The futures can easily lose all the ground till 3070 (the low point of last week) if they start trading below 3140. The entire path between 3070 to 3150 is open for rapid moves this week. While the futures are currently at 3140, they can easily do down to 3100-3120, or go up to 3180 from current level. So 30-50 point upmove or 30 point downmove is possible, which makes it difficult to create a reliable trade with tight stop loss. Traders can buy between 3100-3120 for Target 3150, with 10-20 point stop loss. Last week was volatile, and this week may be similar! Continue reading →

The S&P500 Emini Futures are currently at 3107, and they are now just above the 10 day moving avg, which is very important support line for short term movements, especially after a rally like we have got in Oct-Nov 2019.  The momentum indicator (CCI) is moving downwards, which is negative for uptrend.

Yesterday’s high was 3114, so the futures will gain strength above 3114. Traders should start any fresh long positions only above 3115, because the current zone is not giving any clear signal for the long side trades. If anything, the downside signals are accumulating.

The futures must hold above 3080 for the long trade to sustain, with closing above 3100 being a valuable safety net, because 20-25 points get cut in 10 minutes once the futures start trading below 3100. So traders must be very alert and cautious at current levels. Ideally, the position size must be small/reduced, and the same is being done all large traders and commercial traders.

The S&P500 trend is clearly up and we must only think of long trades. Our S&P500 Emini Futures Trading Strategy is to stay long above 3080 for target 3120 and 3130. We are seeing a major resistance at 3140, so a fresh long trade will be considered above 3150 level, for target 3200.