S&P 500 futures - start of the correction? Daily Market Analysis
Yesterday false breakout to the upside led to last hour sharp sell off and broke the 2880–2900 key support area was a change of behavior to the S&P 500 futures. The selloff found support at 2830 level, which is close to the demand line from the up channel.
Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 13 May 2020 trading session. In this video, I am going to show you the market recap on last session including trade review in M3 (entry, exit and the rationale behind), the bias going forward, the key levels to pay attention to, and the potential setup for the US session later.
12 May 2020 recap - yesterday sell-off was accompanied by increasing of supply, which was in sync with the bearish result. The only bullish sign was despite the increasing effort (volume), the price is still above 2830 key level and within the up channel.
Trade review on yesterday session (Tuesday) - On M3 timeframe, a short entry was initiated after the up thrust within the supply zone 2920–2936, as per my trading plan mentioned in my daily market analysis video yesterday. Second potential short entry after a break down from the localised support near 2915, followed by a backtest and reversal. Watch my daily market analysis video yesterday below if you haven't to get a better context of the trade review:
Since the false breakout of the apex was confirmed after the break down of support level at 2915, long entry from support level near 2900 is no longer valid. A false breakout acts as a failed signal, which favors a bearish entry since breakout to the upside was violated.
Back to the current situation, S&P 500 is still trading within the larger range between 2715–2960. A break below 2830 should see further downside targets at 2775 and 2715. The current rally from the low at 2830 could be a test of yesterday selloff bar from the last hour, which is the key to justify for continuation of the selloff. So, do pay attention to the character of this rally.
Bias - Down (day trading); Neutral (swing trading)
Key levels - Resistance: 2880–2900, 2920; Support: 2850, 2830
Potential setup - a rejection near 2880–2900 resistance area could provide a short entry. A break below 2830 could also form a short entry. Do pay attention to any possible supply absorption from 2830–2850 despite the bearish outlook.
Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 13 May 2020 trading session. In this video, I am going to show you the market recap on last session including trade review in M3 (entry, exit and the rationale behind), the bias going forward, the key levels to pay attention to, and the potential setup for the US session later.
12 May 2020 recap - yesterday sell-off was accompanied by increasing of supply, which was in sync with the bearish result. The only bullish sign was despite the increasing effort (volume), the price is still above 2830 key level and within the up channel.
Trade review on yesterday session (Tuesday) - On M3 timeframe, a short entry was initiated after the up thrust within the supply zone 2920–2936, as per my trading plan mentioned in my daily market analysis video yesterday. Second potential short entry after a break down from the localised support near 2915, followed by a backtest and reversal. Watch my daily market analysis video yesterday below if you haven't to get a better context of the trade review:
Since the false breakout of the apex was confirmed after the break down of support level at 2915, long entry from support level near 2900 is no longer valid. A false breakout acts as a failed signal, which favors a bearish entry since breakout to the upside was violated.
Back to the current situation, S&P 500 is still trading within the larger range between 2715–2960. A break below 2830 should see further downside targets at 2775 and 2715. The current rally from the low at 2830 could be a test of yesterday selloff bar from the last hour, which is the key to justify for continuation of the selloff. So, do pay attention to the character of this rally.
Bias - Down (day trading); Neutral (swing trading)
Key levels - Resistance: 2880–2900, 2920; Support: 2850, 2830
Potential setup - a rejection near 2880–2900 resistance area could provide a short entry. A break below 2830 could also form a short entry. Do pay attention to any possible supply absorption from 2830–2850 despite the bearish outlook.
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