As of 2.30 pm US EST, the S&P500 Emini Futures have bounced back to 2085. A strong recovery of 35 points has happened from yesterday’s closing, which indicates buying strength at lower levels, and therefore higher levels above 2100 can be attempted again. The S&P500 index got deeply oversold rapidly over last 2 days, and such a bounce back was likely. That’s why we did not initiate any short trade, while many traders did that yesterday and have been caught today in this sharp reversal. We are still looking out for suitable long trade.
This high volatility is not conducive for trading in a reliable way. So we will wait for market to stabilize. The buying zone re-starts from 2085-2090 levels, because the lower levels of 2050 have been tested successfully this week. Some of our larger traders who bought a few contracts yesterday around 2045 level based on my mail, were able to sell at 2055-2065 today during the early morning bounce. Unfortunately, such tactical plays can’t be done while trading with 1-2 contracts. Our next trade will be clear after market close today based on analysis of market technicals. A long trade could be considered on closing above 2103.