S&P 500 further weakness ahead after the false breakout
Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (
ES1!
) for 4 May 2020 trading session. In this video, I am going to show you the market recap on last Friday session, the bias for swing and intraday trading, the key levels to pay attention to, and the potential setup for the US session later.
1 May 2020 recap - We have seen continuation of the pullback for last Friday session, which broke the key support level at 2850. In my previous post, I mentioned a potential short entry around 2850–2860 if S&P 500 showed inability to rally up above this area, which worked out very well for an intraday trade. Watch the video trade idea below for last Friday's session if you haven't done so:
Currently S&P 500 is filling the gap created this morning over the weekend. This coincides with the day low from last Friday, which acts as a resistance level.
Since the key support level at 2850 is broken, I expect further weakness in S&P 500 to test the swing low around 2715. Again, should 2715 be broken, 2635 is the last level of defense before I need to re-assess a bearish scenario such as to test the bottom in 23 Mar at 2174 or even form a lower low. If S&P 500 can can still commit above 2635, the uptrend from the bottom in March is still intact.
Bias - down
Key levels - Resistance: 2830, 2850, 2880; Support: 2770 (swing low), 2750, 2715.
Potential setup - A rejection off 2810–2830 should present a good chance for a short entry, with profit taking at swing low levels 2770, 2750 and 2715.
ES1!
) for 4 May 2020 trading session. In this video, I am going to show you the market recap on last Friday session, the bias for swing and intraday trading, the key levels to pay attention to, and the potential setup for the US session later. 1 May 2020 recap - We have seen continuation of the pullback for last Friday session, which broke the key support level at 2850. In my previous post, I mentioned a potential short entry around 2850–2860 if S&P 500 showed inability to rally up above this area, which worked out very well for an intraday trade. Watch the video trade idea below for last Friday's session if you haven't done so:
Currently S&P 500 is filling the gap created this morning over the weekend. This coincides with the day low from last Friday, which acts as a resistance level.
Since the key support level at 2850 is broken, I expect further weakness in S&P 500 to test the swing low around 2715. Again, should 2715 be broken, 2635 is the last level of defense before I need to re-assess a bearish scenario such as to test the bottom in 23 Mar at 2174 or even form a lower low. If S&P 500 can can still commit above 2635, the uptrend from the bottom in March is still intact.
Bias - down
Key levels - Resistance: 2830, 2850, 2880; Support: 2770 (swing low), 2750, 2715.
Potential setup - A rejection off 2810–2830 should present a good chance for a short entry, with profit taking at swing low levels 2770, 2750 and 2715.
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