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.
