S&P 500 futures weaken but demand was spotted yesterday
Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 14 May 2020 trading session. In this video, I am going to show you the market recap on last session including a trade review in M3 (entry, exit and the rationale behind) on a potential aggressive profitable trade on breakout and retest setup, the bias going forward, the key levels to pay attention to, and the potential setup for the US session later.
13 May 2020 recap - there was follow through to the downside for S&P 500 since the selloff on Tuesday. S&P 500 broke below the support level at 2830, which was also served by the demand line from the up channel. On the daily chart, we can see that there was increasing of the supply on yesterday's drop. Yesterday's bar have smaller spread than Tuesday's with demand tail. On the H1 timeframe, S&P 500 did not manage to touch the oversold line.
All the above suggests there was demand coming in to prevent S&P 500 from falling further. This is to be confirmed by a change of character up wave, to at least pause the downtrend for now.
Potential Trade review on yesterday (Wednesday) - Since I did not have any trade, this was only on a potential trade that some might trade. As the potential short entry was too close to the support level near 2830 (as mentioned in my video yesterday) and the demand line from the up channel, plus it happened around 11:30pm, which is a bit late, so I gave it a miss. Aggressive trader might be interested to in initiate a short entry on a breakout and retest setup near 2835 to anticipate breakdown due to excessive supply. Check out my market analysis video below from yesterday if you have not:
Currently, S&P 500 is still below the axis line of 2825. Despite there was some demand to stop S&P 500 from falling further, I need to see aggressive demand to initiate a change of character upwave in order to pause the downtrend.
Else we should see S&P 500 to find support at lower levels at 2750-2775 or back to 2715.
Bias - Neutral (day trading); Neutral (swing trading)
Key levels - Resistance: 2825–2830, 2850; Support: 2786 (swing low)
Potential setup - a rejection around 2840-2850 could provide a short entry. Else a bounce from around 2786–2800 could form a long entry.
Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.
13 May 2020 recap - there was follow through to the downside for S&P 500 since the selloff on Tuesday. S&P 500 broke below the support level at 2830, which was also served by the demand line from the up channel. On the daily chart, we can see that there was increasing of the supply on yesterday's drop. Yesterday's bar have smaller spread than Tuesday's with demand tail. On the H1 timeframe, S&P 500 did not manage to touch the oversold line.
All the above suggests there was demand coming in to prevent S&P 500 from falling further. This is to be confirmed by a change of character up wave, to at least pause the downtrend for now.
Potential Trade review on yesterday (Wednesday) - Since I did not have any trade, this was only on a potential trade that some might trade. As the potential short entry was too close to the support level near 2830 (as mentioned in my video yesterday) and the demand line from the up channel, plus it happened around 11:30pm, which is a bit late, so I gave it a miss. Aggressive trader might be interested to in initiate a short entry on a breakout and retest setup near 2835 to anticipate breakdown due to excessive supply. Check out my market analysis video below from yesterday if you have not:
Currently, S&P 500 is still below the axis line of 2825. Despite there was some demand to stop S&P 500 from falling further, I need to see aggressive demand to initiate a change of character upwave in order to pause the downtrend.
Else we should see S&P 500 to find support at lower levels at 2750-2775 or back to 2715.
Bias - Neutral (day trading); Neutral (swing trading)
Key levels - Resistance: 2825–2830, 2850; Support: 2786 (swing low)
Potential setup - a rejection around 2840-2850 could provide a short entry. Else a bounce from around 2786–2800 could form a long entry.
Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.
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