Tag Archives: 3300

Emini Futures Trading Analysis- 27Jan2020

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spx500-futures-daily-chart-analysis2-27jan2020

Hello Folks, the S&P500 futures are at 3244.00
Today’s Range (so far): 3235.75 – 3268.50

The futures are down 50 points from Friday’s closing. There was a gap down opening of 25 points below Friday’s closing of 3293, and the futures have gone down further on liquidation of long positions with stop losses. As we mentioned earlier, the futures can correct rapidly below 3300, and that has played out since Friday evening. That’s why 3300-3290 were last Stop loss on our General Trades.

In the very short term, the hourly charts are now showing positive momentum, which can support price from falling further. But this quick 100 point correction from 3337 to 3235 has broken many support levels, and rework is needed at each key level like 3250, 3280, 3300.

spx500-futures-hourly-chart-analysis2-27jan2020

Most importantly, the strong uptrend that started on 10th Oct 2019 is at risk currently, unless the futures move above 3280 within this week.

The key support levels on the downside are at 3200 and 3180, but the futures may not go there directly, and there maybe upward spikes. The S&P500 futures will be strong above 3260, and fresh selling pressure will come below 3180. Trades with 10-20 point Stop loss will not work in current conditions of high volatility. Position size needs to be smaller, and Stop loss needs to be wider.

spx500-futures-5hr-chart-analysis2-27jan2020

This is an unforeseen event based correction, and its difficult to predict how much impact it will have. We have to let the big market players decide the market direction in the next 2-3 days, while we observe carefully. We should avoid new trades till we get some clarity. Thanks.

Emini Futures Trading Analysis- 21Jan2020

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spx500-futures-daily-chart-analysis1-21jan2020

Hello Folks, the S&P500 futures are at 3321.50
Today’s Range (so far): 3307.50 – 3325.50

S&P500 Futures Technical Analysis: The futures are facing profit taking after moving to new life time highs of 3325-3330, which is very normal. Last week was positive and this week is looking okay as of now. We could see retest of 3300-3290 this week on the downside, and we could see 3340-3350 on the upside. The futures are trying to move up currently. Today’s close will be an important indication.

Our SP500 Emini Futures Trading Strategy continues to be the same. We want to buy on corrections and sell with 20-30 points gain. We may get a new General Trade today, based on how the futures handle 3310-3320 level. Please stay alert. Thanks.

[Bonus Trade]
“Buy at 3313 for Target 3333 with Stop loss 3293.”
This trade may trigger today or tomorrow morning.

Note on Position Size: Please note that we can trade max 1 Emini Contract (50 futures) for every $10K trading capital. So max 2 Emini Contracts (100 futures) for $20K capital, and max 10 Emini Contracts (500 futures) for $100K capital. Position size management is very critical for success in futures trading, because it enables us to navigate different types of market conditions without breaking down. Thanks.

Emini Futures Trading Analysis- 16Jan2020

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spx500-futures-daily-chart-analysis1-16jan2020

Hello Folks, the S&P500 futures are at 3320.50
Today’s Range: 3294.50 – 3323.00

The following Optional Trade, or Bonus Trade given yesterday got activated today morning at 3300, and got completed by eod today itself at 3320, giving 20 points gain.
“Buy at 3300 for Target 3320 with Stop loss 3280.”

It could have been a General Trade, but the set up was a bit less reliable that what we would like to have for a General Trade. Plus we would put to risk the 20 points we have already made earlier this month.

All along, we were sure of the futures hitting 3300 during Jan 2020, and the way they moved up today morning with a gap-up, it indicated clear buying strength, with increasing momentum. 3320 was visible as the target, but the path was not clear. We are glad it has given gains to several traders who used that input. 3325 may come tomorrow and the second Optional Trade can also complete, from 3305 to 3325.

Just fyi, it takes a lot more thought and analysis when we are trading at lifetime high levels like today, because we have no reference points from previous market action at that level, and we have to create them ourselves. We have to remain long, and we have to remain cautious. Thanks.

Emini Futures Trading Analysis- 15Jan2020

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The S&P500 Futures are looking ready to cross 3300 level.
Above 3300, the immediate upside target will be 3320-3330.
Traders can use 3275 or 3280 as the Stop loss on long trades.

spx500-futures-daily-chart-analysis2-15jan2020

The support nearest level is at 3275, which was the level from which the futures bounced back on Tuesday, 14 Jan 2020 and the futures stayed above this level today, while trying to move higher, and made a new life time high of 3299.

SP500 Trend is clearly up, and traders should only do long trades.
However, the momentum is coming down, which may create resistance for upmove.

spx500-futures-daily-chart-analysis1-15jan2020

Emini Futures Trading Analysis- 14Jan2020

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EOD Update, 14 Jan 2010
Please see the image below. It’s the 1 minute chart of SP500 futures, and it happened about 5-10 minutes after my previous mail, which was sent at 3294.25, and the futures tanked from 3294.75. Please see how 10 points were gone in just 2 minutes, and about 20 points were gone in 35-40 minutes. That’s why I was saying that the market conditions can become volatile rapidly, and we have to be very cautious at current levels, and preserve the gains we have already made in Jan 2020.

spx500-futures-1min-chart-analysis1-14jan2020

Could such a swift correction be anticipated and captured? Not really. Most traders and trading systems can’t catch such swift corrections, and we are better off watching it from the sidelines, and waiting for a better trading opportunity.

As mentioned earlier, this market can get volatile rapidly in current conditions, because of the heavy built up of speculative Call Options on the SP500.

Please see the daily chart below, with CCI indicator plotted on it. The daily chart is showing weakening momentum, which means further price rise will face resistance.

spx500-futures-daily-chart-analysis3-14jan2020

A positive outcome of today’s correction is that it has revealed that the current support level is at 3270-3275. So any long trade will need this as Stop loss. A clear long trade may emerge above 3290-3295. We must be very selective and cautious in any new trades.

Our Emini Futures Trading Strategy is to wait for clarity in the daily charts, and take long trades after corrections, or above 3300, which will be a fresh breakout on the upside and it can give 20-30 points. Thanks.

[Bonus Trade]
Buy at 3300 for Target 3320 with Stop loss 3280.

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Hello Folks, the S&P500 futures are at 3294.25
Today’s Range: 3275.50 – 3296.50

The futures are heading towards 3300, and 3320 is also possible, but the setup is not giving a clear trade. So are watching for a suitable setup for a long trade.

Please note that the current market is significantly overbought with the highest call option activity ever for SPY (the S&P500 ETF), so we have to be very careful here, because volatility can increase rapidly here, and even a 20-point stop loss will be gone within minutes. So we must wait and watch for a better quality setup. 3280 is a support as of now, in the near term, but it can’t hold any bigger selling.

All our Optional Trades have also completed at 3280, and there is no new trade of any type as of now. I will share some more notes later today. Thanks.

Please Note: The latest daily chart indicates that we can get a quick correction of 30-40 points below 3275, and momentum is also turning down, which will make it difficult for reliable upside move. We have to wait and see how the futures navigate the 3300 level.

spx500-futures-daily-chart-analysis2-14jan2020