Today’s opening is strong, and much better than the weak moves of yesterday afternoon (which could lead to larger down moves). With today’s positive opening, the S&P500 has a 50% probability of hitting 1900 by end of today. Therefore, Traders with multiple contracts should hold at least one contract long for 1900 target. The index is in a tight range for last 5 weeks, and upside move looks more likely as of now. Above 1900, targets of 1920 open up. Our next trade (Trade#3 of May) will be on closing above 1900 or after a correction.
Suggested Trade for Active Traders:
In case you are trading with multiple contracts, once S&P500 crosses 1897, there may be a quick move from 1897 to 1902 (5 point gain). Traders can try this trade with one contract or few contracts depending on your trading volume.