The S&P500 emini futures has been in a major decline and is subject of weekly talks in our Day Trading Course.
Join us as we go through a little bit of our analysis on the stock market through the futures index.
This is a monthly Chart on the S&P500 emini future. We are looking at the major areas of support and resistance and where the point of control is for buyers and sellers.
The point of Control is at our first major support presently at 1240. This is on a larger time frame and we are at the beginning of the month.
Our next support is 1210 and then 1180. If sellers stay in control we could see a move to 1160 to test the supporting trend line. As mentioned earlier this summer, I would expect to see this first support tested at the 1240 area. We could see this end it’s move at the second support of 1230 where it was tested on the move up 5 months earlier. The buyers moved in at that support level to bring on new swing highs.
Do consider that this is a very volatile period. With pressure from all the economic news that was looked over this past year and the absurd amount of debt the US government has taken on.
We shall see this play out a bit better on shorter term charts.
The seasoned traders know that they have had to build up their trading maturity level to make the trades that took the profit out of the market today.
The S&P500 day trading course emphasizes that how you do anything is how you do anything. Trading is actually very simple, but it is not easy.
Let’s look at the weekly charts.
We can see a lot of trader indecision at these levels. Previously, when price consolidated at the monthly highs and lows, this turns into areas of in decision in the market where there was no agreement as to direction. The Red box is an area of indecsion which we will be able to watch price action play out, I have noted the support at the bottom of the box and will watch price on its approach to see if it has enough commitment from the sellers to make to the next level
The tests down seem to stall and settle close to the opening price. Remember these price levels are on the weekly chart. I am not suggestion to trade off of these levels as all day traders are responsible for their own work.
As you can also see the price is holding the major trend and is showing a movement about half of the previous swing range. Could have a bit more to go.
Price for the S&P500 day trading course is the most important variable to understanding direction and the structure of the market.
On the Daily chart we can see how the price has moved in a consistent pattern through the support as mentioned in previous day trading posts. The point of control for the daily chart will be 1258.75 with the sellers in control of the close. support cam in at 1244 and we will probably look at consolidation with a move to the Point of control and a further move down to the supporting trend line. This is the area of consolidation on the weekly chart.If there is a break through at these levels then watch as sellers take this to 1219 and maybe to test the swing low of 1210.
The extreme low of this move would be 1160 if we get a break of the 1200 psychological support watch out. If earnings come out with negative surprise, we could get some sell offs that might push the indexes down. Learning how to trade the markets takes time and patience. Our day trading course includes a live trading room where we trade together a few times a week. Join us in taking the profit out of the market. Trading is highly risky, do your own homework, your money is your responsibility.
Always manage your risk first. Check out the post below as one of our traders took 27 points in a live trade today.