S&P 500 Spring plus a test with higher upside - Market Analysis
Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 18 May 2020 trading session. In this video, I am going to show you the market recap on the last session including trade review in M3 (entry, exit and the rationale behind) relying on a spring setup 9 minutes after the US opening, the bias going forward, the key levels to pay attention to, and the potential setup for the US session later.
15 May 2020 recap - 2 hours prior to US opening, S&P 500 formed a down-sloping range in M3. This down-sloping range was considered as a test of the last hour bar, which was key area as mentioned in my daily market analysis video on last Friday. During the first 10 minutes of the opening, S&P 500 had a spring of the localized low followed by a reversal bar, which was a nice long entry. Watch my market analysis video on last Friday below if you haven't to get a better context for the trade review.
On H1 timeframe, Friday's pullback to level around 2810 could be considered as a test of the spring formed on Thursday on lower volume. Continuation to the upside to be expected.
Trade review on last session (Friday) - On the M3 timeframe, after a spring of the localized low on 9:33pm bar followed by a reversal bar next, a long entry was initiated, in anticipation a break out to the upside from the down-sloping range. The bar that initiated the spring of the low was a big spread bearish bar. If it really was that bearish, we should see continuation of break down to the downside or at least weak rally instead of a big spread bullish reversal bar right after the spring bar.
The second long entry was after a reaction and tested 2815 level coincided with the base where previous breakout initiated. A limit exit is set at the high of the rejection bar with high volume at 10:36pm (GMT +8).
Fast forward to the current chart, S&P 500 continued to rally in the Asian and London session currently within the resistance zone 2890–2910. We need to pay attention to how the price interacts within this resistance zone (also refer to big spread breakdown bar acted as supply zone on 13 May in H1 timeframe). If S&P 500 can break the resistance zone, it is likely to test the next swing high at 2950–2960.
Bias - Up (day trading); neutral (swing trading)
Key levels - Resistance: 2890–2910, 2940–2960; Support: 2840–2860
Potential setup - a test and bounce from the support zone 2840–2860 also coincides with the last hour bar from Friday could form a long entry. Else pay attention to rejection and reversal from the resistance zone 2890–2910 to initiate a short entry.
Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.
15 May 2020 recap - 2 hours prior to US opening, S&P 500 formed a down-sloping range in M3. This down-sloping range was considered as a test of the last hour bar, which was key area as mentioned in my daily market analysis video on last Friday. During the first 10 minutes of the opening, S&P 500 had a spring of the localized low followed by a reversal bar, which was a nice long entry. Watch my market analysis video on last Friday below if you haven't to get a better context for the trade review.
On H1 timeframe, Friday's pullback to level around 2810 could be considered as a test of the spring formed on Thursday on lower volume. Continuation to the upside to be expected.
Trade review on last session (Friday) - On the M3 timeframe, after a spring of the localized low on 9:33pm bar followed by a reversal bar next, a long entry was initiated, in anticipation a break out to the upside from the down-sloping range. The bar that initiated the spring of the low was a big spread bearish bar. If it really was that bearish, we should see continuation of break down to the downside or at least weak rally instead of a big spread bullish reversal bar right after the spring bar.
The second long entry was after a reaction and tested 2815 level coincided with the base where previous breakout initiated. A limit exit is set at the high of the rejection bar with high volume at 10:36pm (GMT +8).
Fast forward to the current chart, S&P 500 continued to rally in the Asian and London session currently within the resistance zone 2890–2910. We need to pay attention to how the price interacts within this resistance zone (also refer to big spread breakdown bar acted as supply zone on 13 May in H1 timeframe). If S&P 500 can break the resistance zone, it is likely to test the next swing high at 2950–2960.
Bias - Up (day trading); neutral (swing trading)
Key levels - Resistance: 2890–2910, 2940–2960; Support: 2840–2860
Potential setup - a test and bounce from the support zone 2840–2860 also coincides with the last hour bar from Friday could form a long entry. Else pay attention to rejection and reversal from the resistance zone 2890–2910 to initiate a short entry.
Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.
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