S&P 500 Futures - change of behavior with these telltale signs
20 Apr 2020 recap - Despite S&P 500 futures (
ES1!
) dropping 63 points, it is still above 2800 support level. Yet there are some of telltale signs as shown below provide a red flag to me that there is a change of behavior in S&P 500 futures, suggests the up swing could at least be stopped for now with possible reaction to test the supports at lower levels.
In my previous post, I have mentioned shortening of the upward thrust and up wave in both daily and H4 charts, suggests the losing momentum in S&P 500. The up thrust movement (i.e. only temporary commit above 2845 and quickly fall back) created in the past 3 trading days coupled with somewhat climatic action in 17 Apr plus a break down of the channel in H4 timeframe coincides with support level 2800 (unfolding as of writing this post).
The above telltale signs convince me that there is a change of behavior in S&P 500 futures, which means that the inch up movement might be ending soon. A break below 2750 support level should signify a change of character for S&P 500 to start a down move to test the support on the lower levels.
Bias - down
Key levels - Resistance: 2800, 2850 Support: 2750
Potential setup - look for a test of 2800–2810 to short upon rejection with a target at 2772, 2750 or lower. Stop loss at 2825.
ES1!
) dropping 63 points, it is still above 2800 support level. Yet there are some of telltale signs as shown below provide a red flag to me that there is a change of behavior in S&P 500 futures, suggests the up swing could at least be stopped for now with possible reaction to test the supports at lower levels.
In my previous post, I have mentioned shortening of the upward thrust and up wave in both daily and H4 charts, suggests the losing momentum in S&P 500. The up thrust movement (i.e. only temporary commit above 2845 and quickly fall back) created in the past 3 trading days coupled with somewhat climatic action in 17 Apr plus a break down of the channel in H4 timeframe coincides with support level 2800 (unfolding as of writing this post).
The above telltale signs convince me that there is a change of behavior in S&P 500 futures, which means that the inch up movement might be ending soon. A break below 2750 support level should signify a change of character for S&P 500 to start a down move to test the support on the lower levels.
Bias - down
Key levels - Resistance: 2800, 2850 Support: 2750
Potential setup - look for a test of 2800–2810 to short upon rejection with a target at 2772, 2750 or lower. Stop loss at 2825.
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