S&P 500 plunges with a false breakout - daily market analysis

S&P 500 futures ( ES1! ) continued yesterday's selling and plunged more than 2% below 2850 as of the London session now. The price action today before the US session revealed a false breakout on S&P 500.

30 Apr 2020 recap - Yesterday session had seen an increase of supply in synchronization with the bearish price action dropping 1.3% off the top for S&P 500. The only relieve sign was the close was above support zone between 2880–2900.

The first support level at 2850 was broken during the London session. Inability to rally up above 2850 would likely to see S&P 500 to test the swing low at 2715. The next level of support is at 2635 if level 2715 is broken.

The key level is at 2850. A recovery above 2850 could hold on the long-waited correction.

Bias - down

Key levels - Resistance: 2850, 2880-2900, 2960 (swing high); Support: 2760, 2715 (swing low), 2635 (axis line)

Potential setup - A rejection off 2850–2860 should present a good chance for a short entry, with the take profit targets at 2760, 2715.