S&P 500 No follow through to downside daily market analysis
Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (
ES1!
) for 5 May 2020 trading session. In this video, I am going to show you the market recap on yesterday's session on Monday including trade management review of an intraday trade, the bias going forward, the key levels to pay attention to, and the potential setup for the US session later.
4 May 2020 recap - S&P 500 was testing the gap resistance at 2810 for almost 3 hours. Yet, there was no follow through to the downside. Eventually it was resolved via a spring and rallied up in the last 2 hours to close at 2833.
On M3 intraday, ES was rejected at the gap resistance around 2810, which was a potential short entry, as mentioned in my video yesterday. Yet, after three attempts to go lower, it failed to follow through to the downside and formed a higher low at the third push, which I exit the short trade. With the proper trade management strategy by reading the chart, I have managed to reduce the loss from -1R to -0.3R. Feel free to watch my video yesterday below:
Currently, S&P 500 is breaking the resistance level at 2850. I expect further rally to test the next key area at 2880–2900 before we see some reactions.
Bias - neutral
Key levels - Resistance 2880–2900, 2960 (swing high); Support: 2850
Potential setup - a test and reversal from 2846–2852 could form a long entry on anticipation of continuation of up trend to test 2880–2900. Else, rejection from 2880–2900 area can be a short entry.
ES1!
) for 5 May 2020 trading session. In this video, I am going to show you the market recap on yesterday's session on Monday including trade management review of an intraday trade, the bias going forward, the key levels to pay attention to, and the potential setup for the US session later. 4 May 2020 recap - S&P 500 was testing the gap resistance at 2810 for almost 3 hours. Yet, there was no follow through to the downside. Eventually it was resolved via a spring and rallied up in the last 2 hours to close at 2833.
On M3 intraday, ES was rejected at the gap resistance around 2810, which was a potential short entry, as mentioned in my video yesterday. Yet, after three attempts to go lower, it failed to follow through to the downside and formed a higher low at the third push, which I exit the short trade. With the proper trade management strategy by reading the chart, I have managed to reduce the loss from -1R to -0.3R. Feel free to watch my video yesterday below:
Currently, S&P 500 is breaking the resistance level at 2850. I expect further rally to test the next key area at 2880–2900 before we see some reactions.
Bias - neutral
Key levels - Resistance 2880–2900, 2960 (swing high); Support: 2850
Potential setup - a test and reversal from 2846–2852 could form a long entry on anticipation of continuation of up trend to test 2880–2900. Else, rejection from 2880–2900 area can be a short entry.
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