This is the first publication of my daily preparation for the trading of S&P futures (ES) and it is for your educational purpose only. I will continue to put more efforts to improve quality of the analysis.
Last week's performance (06/12-06/16) should be considered as balanced and was awaiting for new information to gain stimulus for move up or reversal. After inability to find new buyers on Tuesday, market took a direction towards bottom of the range (price zone 2415-2020) where new mid-terms buyers revealed a great willingness to go long at good prices. As a result market opened with a gap upwards on Monday (06/19) and established a new all time high 2451.5.
However, this might also be a turning point downwards for upcoming days, for the following reasons:
- during Monday US trading session, the previous all time high of 2443.5 was broken during opening hour and following move upwards was driven by liquidation of short positions, rather than new long market participants. After this, the rest of the day was spent in a value range (2446-2449).
- Yesterday (06/20) market opened inside previous day's range and new short and mid term sellers joined the market into anticipation to close the Monday's opening gap and to return to previous week's range.
Today market seems finally will accomplish target of closing gap between Friday and Monday. However, as market will already open within previous week's value range. As a result 2432-2427 (high volume area) is expected to be major support area. In case it will be breached, market is expected to target 2420 zone (last week value area's bottom). If 2420 zone will hold this week is expected to remain in the 06.01-06.21 value and volume rage. In case 2420 area will be breached the following target is expected to be 2405. In case new buyers will join in the area 2427-2432, we are likely to witness an attempt to establish a new all time high around 2451.5. If this level will be breached we are likely to target level of 2474.
NOTICE: All the information provided above are for educational purpose only and should not be considered specific investment advice. Derivatives trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results.