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.

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.

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.

Hello Folks, Wishing you Merry Christmas and Happy New Year!!
May God bless you with great health, success and happiness!!

The #SP500 futures are at 3226. They have done a strong upmove in last few weeks. As mentioned multiple times in previous posts, we must stay long above 3000, and that has already given 200+ points gain.

The uptrend which started on 10 Oct 2019 is still intact, but there will be some inevitable profit taking that will come on any negative news. Therefore, at current level, we should take profits and have fewer long positions. 3200 is the absolute stop loss or cut off for any long trade at current level.

The monthly chart of SP500 futures is still bullish, and we may see further upmove in Jan 2020, but we can consider new trades for Jan 2020 once we are there. So we should be cautious, but maintain long view above 3200. Above 3220, the target is 3250.

Here’s a Bonus Trade:
“Buy at 3223 for Target 3249 with Stop loss 3200.”
Please Note: This trade has 50-50 chance of success, so it’s meant as an Optional Trade with 1-3 contracts for larger traders with surplus capital that is currently idle after profit taking. If you are trading with 4-5 Emini Contracts, you could try this trade with 1 contract. If you are trading with less than 4 Emini Contracts, then this trade is not suitable for your case. Its better to wait for more reliable setups.

Last year on 25 Dec 2018, the market was absolutely bearish (and we kept buying at the low levels to the extent possible, because a good rebound was sure from such low levels) and indeed things turned around in Jan 2019. And today on 25 Dec 2019, the market looks absolutely bullish, with very high (near record) levels of optimism by investors and traders and record high activity in Call options. Such situations usually don’t give good gains in the short term.

The major support is at 3020 level, which is 200 points down from current level. That 3020-3030 level was a major resistance earlier and it took several attempts to cross it, so now it will provide strong support.

Year 2019 has given one of the best gains in last 20 years, and we can’t expect such years again and again. The market will have to absorb these gains, which will require some consolidation, so we may see prices trying to consolidate around 3000-3200 in the coming year 2020. Year 2020 is also a US Presidential Election Year, so there will higher volatility, especially in H2, 2020. We will need to work with tight stop losses and clear targets in all our trades, and we must remain very alert and agile. Thanks!