Tag Archives: SP500 Resistance Levels

Emini Futures Trading Analysis- 06Feb2020

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Hello Folks, the S&P500 futures are at 3343.00
Today’s Range: 3322.25 – 3357.00
The futures broke out of the 3330-3340 resistance zone last evening, during after market hours, and raced up till 3357.

“But the uptrend is also in good momentum, and we have target of 3350-3360”
— The above target came during after market hours, and a few active traders could use it for making fresh gains. In our own trading accounts, 3353 target got executed but orders placed at 3358 got missed by a point.

Optional Trade update:
“Buy at 3333 for Target 3353 with Stop loss 3213.”

The above trade given yesterday after market hours, did not execute at 3333 yesterday evening, because the futures were moving around 3335, and then took off for 20 point upmove to 3355, within 5-10 minutes of my mail. In other words, by the time the trade was visible to us, it also became visible to many other traders and trading algorithms! A few nimble traders were able to buy during this upmove between 3335-3340 and sell at 3353, with 10-15 points gain.

If you have bought at 3333 today morning with limit buy order, then please exit at current price of 3343, with 10 points gain, because this is not the same trade of yesterday, because the 3353 target has already been hit. We have no new trade as of now, and will mail you again later with market analysis. Thanks.

Emini Futures Trading Analysis- 05Feb2020

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spx500-futures-daily-chart-analysis2-05feb2020

spx500-futures-hourly-chart-analysis2-05feb2020

Hello Folks, the S&P500 futures are at 3325.00
Today’s Range (so far): 3288.25 – 3331.00
The futures made a high of 3331 today morning, and our target 3325 was hit.
Trade#1 of Feb 2020 (completed successfully with 25 points gain)
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Buy at 3300 for Target 3325 with Stop loss 3280
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In fact, 3330 was the upper target for this upmove, which was also hit. Now, this 3325-3340 is an area of significant resistance, so we have to be careful here. Above 3340, we can take new long trades again, because it will be a fresh breakout. Above 3300, the futures are safe. There is no new trade as of now. I will mail you again with some notes. Thanks.

Emini Futures Trading Analysis- 30Jan2020

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spx500-futures-daily-chart-analysis3-30jan2020

Hello Folks, the S&P500 futures are at 3289.00
The futures went down till 3240 with gap down today morning and by end of day, they bounced back sharply to 3289, and there by closed above 3280. Continue reading →

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- 24Jan2020

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spx500-futures-30min-chart-analysis5-24jan2020

If you were actively trading SP500 Futures this week, then this post is for you.

Friday’s intraday fall of 56 points in SP500 futures was unexpected and it caught almost everybody by suprise, and it broke many long positions that were created based on the strong bullish move of Thursday, Jan 23. The fall is being attributed to China Coronavirus concerns on global growth, which caused cascading Stop losses on various long positions between 3320 to 3290.

We got a sense of something not going right at 3323-3325 level because the futures should not have come back there today at all! Plus the fact that they did not make a new high today and they could not cross the previous high of 3337, made things bearish at 3325. That’s when we decided to close the ongoing long trade at or near cost price. Some traders who wanted to hold a few long positions with 3300 Stop loss also got hit, and our final Stop loss on all long postions was 3290, which was also hit.

While a retest of 3300 support level was looking possible from the start of the week, a test of 3280 within the same session was not visible. It shows that a significant amount of long positions got hit with Stop loss yesterday.

But the SP500 futures uptrend, which started in Oct 2019, is still intact, and fresh long positions can be created above 3300 for targets of 3330-3350. The support level is at 3370-3380, but we have to be careful, because below 3300, even 3250 level can get tested in the coming week – it depends on the intensity of negative news coming from China.

The futures will rapidly gain strength above 3300, and Traders should consider adding new long positions, plus all the Stop loss positions will also attempt to add back their long positions. Therefore the price recovery above 3300 can be rapid. The range for next week can be 3250 on downside and 3350 on upside. A more likely range would be 3270 to 3330. So, we are seeing 3330 level coming back at least once, and we should aim to use that. Thanks.