S&P 500 strong rally up confirming the demand on 13 May
Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 15 May 2020 trading session. In this video, I am going to show you the market recap on the last session including a trade review in M3 (entry, exit and the rationale behind) relying on a spring and test setup, the bias going forward, the key levels to pay attention to, and the potential setup for the US session later.
14 May 2020 recap - At the US opening, S&P 500 was rejected from the resistance area around 2790–2800 and subsequently dipped below 2771 swing low temporarily, and reversed and stayed above the level, which is a spring setup I favor for long entry. As mentioned in my daily market analysis video yesterday, demand was present on 13 May based on the assessment of effort vs result, the spring setup is a reliable setup for long entry under the context. Watch my market analysis video yesterday if you haven't so you can better relate the trade review:
Trade review on yesterday session (Thursday) - On the M3 timeframe, after a spring of the swing low at 2771, followed by a test and reversal, a long entry was initiated on the breakout of the supply zone 2766-2775. The immediate take profit target was aimed at resistance level 2790–2800. Trailing stop was used to mange the trade and stopped out at 2802 while getting a Reward to Risk ratio of 1.6.
Back to the situation now, S&P 500 appears to have a spring of the prior swing low. The change of character initiated from yesterday session accompanied with great demand volume, which was in sync with the bullish spread (result). I expect upside continuation to 2890 and eventually the swing high at 2960.
Bias - Up (day trading); neutral (swing trade)
Key levels - Resistance: 2865, 2890, 2860; Support: 2820-2830, 2790–2800, 2770
Potential setup - a test of the last hour bar from yesterday coincides with 2820–2830 support area. A bounce from the area could form a long entry.
14 May 2020 recap - At the US opening, S&P 500 was rejected from the resistance area around 2790–2800 and subsequently dipped below 2771 swing low temporarily, and reversed and stayed above the level, which is a spring setup I favor for long entry. As mentioned in my daily market analysis video yesterday, demand was present on 13 May based on the assessment of effort vs result, the spring setup is a reliable setup for long entry under the context. Watch my market analysis video yesterday if you haven't so you can better relate the trade review:
Trade review on yesterday session (Thursday) - On the M3 timeframe, after a spring of the swing low at 2771, followed by a test and reversal, a long entry was initiated on the breakout of the supply zone 2766-2775. The immediate take profit target was aimed at resistance level 2790–2800. Trailing stop was used to mange the trade and stopped out at 2802 while getting a Reward to Risk ratio of 1.6.
Back to the situation now, S&P 500 appears to have a spring of the prior swing low. The change of character initiated from yesterday session accompanied with great demand volume, which was in sync with the bullish spread (result). I expect upside continuation to 2890 and eventually the swing high at 2960.
Bias - Up (day trading); neutral (swing trade)
Key levels - Resistance: 2865, 2890, 2860; Support: 2820-2830, 2790–2800, 2770
Potential setup - a test of the last hour bar from yesterday coincides with 2820–2830 support area. A bounce from the area could form a long entry.
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