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Day Trading Course Bullish Channel day trader education
The S&P500 day trading course areas of support and resistance. Looking at the S&P50 emini futures contract.
Day trading course S&P500 emini futures
The S&P500 is in a longer term bullish channel with support coming in at 1258 and the top of the channel running to 1296. Currently we are bouncing in this channel with 1262 being recent support and probably 1277 area being the next move into resistance.
The Point of Control on the 30 min chart is 1265.50 and we will open this evening with the sellers in control. Watch for a move to the 1270 area as Europe could open into a lot of volatility.
Greece is topping the news, but what is happening in Spain, Italy, Ireland really dwarfs the 12 billion Greece needs to stay open.
Back to the S&P500, we could see mostly consolidation in this coming week until we break this channel. It would not be unusual for this to move into a pennant formation with higher lows and lower highs and a 12- 14 point range before the break out.
Understanding the tendencies of the market is one of the most important underlying factors in seeing direction in the market place. The Money Maker Edge day traders will be having a day trading course in Montreal July 9-11. There is space open, join us if you can. The activities we use to get the break through in your trading are amazing. You will learn about your self and the market.
Day Trading Course, Where will the S&P 500 Go?
I decided to look at the weekly today because of some interesting levels in it. Also I am doing a longer term forecast because I will be away for the next few weeks and am not sure how often I will be able to get posts up for you. This way we can anticipate this entire week or two, instead of just the next few days. Just remember the price action tells us where to look.
So where is the S&P 500 going to go?? 5 weeks of the last 6 being bearish, where do we look for the next stop in this seasonally bearish time? Reports have not been good lately, seemingly everything has taken a turn for the worse. Not that it matters to us TA guys, it is all in the charts for us, so why don’t we get to it?
Looking at the weekly chart we can see that the latest moves down have been very consistent in their parking on the long term support lines. Targets on this recent move down have all been closed in the last few week from 1304 all the way down to the 1274 targets, while touching and testing the 1262 area on Friday. Looking at the chart we can see that the next key level to watch the bears move towards is going to be the 1252-1255 area of support. Weekly support in here will come in and make this a key area for this week. If support here will hold, the S&P could see some consolidating here with a small test back up. On the weekly this would give us an inverse H&S pattern to look for the daily signal to see testing into the 1275, 1284, and 1290 area’s. However if support does not hold here in the 1352 area then price could continue to press towards the bottom of the long term Bullish channel and test into the 1240.00, 1227.50, and possibly to 1212.00 support. Key level will be the price action off of the 1252.00 – 1255.00 area. Trade what you see, I’ll see you at the starting line!Day Trading Course, Weekly Market Reviews
The current markets were driven multiple
forces this week including developments in the EU periphery, and news flow
related to the Greece aid package. Following the much anticipated
signal for a July rate hike on Thursday ECB meeting, market participants took
profits and placed their focus on Greece instead of future interest rate
increase. Euro Traders Focus on Peripheral Issues
Trichet’s statement that the ECB has no
intention to roll over Greek debt, even if private holders agree to participate
voluntary, has only added to the tensions. The ECB thus digs itself
further into its position, aggravating the public rift with Germany that was
epitomized by Finance Minister Schaeuble’s letter a few days ago. Deepening the
divide even further, German parliament voted Friday to back further aid to
Greece but only with private investor participation.
The US equity markets and commodity markets
received a boost on Thursday after the U.S. trade deficit in April moved to its
lowest level of the year. Exports hit a new high and purchases of oil
fell off sharply amid a surge in prices. The U.S. deficit declined 6.7% to
$43.68 billion, narrowing much more than Wall Street expectations of 49 billion.
Unfortunately the good news was short lived.
The inventories of U.S. wholesalers climbed by
0.8%, less than March’s 1.3% rise, while sales of wholesalers went up a mere
0.3%, after a 3.0% gain in March. U.S. sales abroad set new highs in
petroleum and other types of industrial goods, as well as capital goods. Exports
of industrial supplies grew by $2.04 billion, while capital goods exports like
computers rose $1.24 billion. The climb in inventories is likely to have a
positive effect on second quarter GDP. The Fed’s forecast for increasing growth
could actually be correct.
The trade gap with Japan shrank 40.8% to $3.59
billion, with imports suffering a record monthly decline as the country
continued to cope with the aftermath of a crippling earthquake and
tsunami. U.S. exports continued to reach record levels, expanding 1.3%
to $175.56 billion. Imports decreased, easing 0.4% to $219.24 billion.
The Euro did an about face as traders took
profits near resistance at the 1.4710 level, after as expected news was received
that the ECB will likely raise interest rates at their July meeting.
The EUR/USD held support at the 20-day moving average near 1.4330. Resistance is
now seen at the 5-day moving average near 1.46.
USD/JPY
on the ropes
The USD/JPY continued to trade in a tight
range near the intervention level of 80.00. The currency pair test
79.60 a few times during the past week, and a break of this support level will
likely target the 78.00 level. Resistance is seen near 82.00.
