Here below please find attached the analysis of the S&P500 e-mini futures for last Friday July 19th:
After failing the sequence of measured moves higher in the second part of May price never continued lower into the 1500 area as anticipated. Price rather stopped at the next extension long on the weekly timeframe. That support area, in the 1559 to 1566,saw strong participation on the upside, showing that Program Trading is still supporting prices higher (see below picture).
Price printed fresh new highs yesterday and today confirmed that move. If price gets a correction in the coming days I do not see price moving below the 1647 to 1656 area. If price moves into that area I see a good opportunity to buy or add to longs as Program Trading and professional traders are now targeting the 1718 to 1730 area (1st target). When/if price gets there I would expect some sort of profit taking.
Thanks to the participation of longs at the 1566 area, which is an area of continuation in extensions longs, there is now the potential for the market to get to the 1800 to 1820 area (2nd target), before a sensitive correction takes place. In that case I would exit at 1800.
If you want to have access to trading plans, watch weekly video reviews as I develop or record them, or get information on setups (before they happen) for the Euro-Dollar cross, the S&P500 index and some high volume stocks, please subscribe my newsletter. It’s free and you get additional content like market commentaries, setups, e-books, articles on HFT and program trading, learning material on my method and video-analysis that I don’t make available on my blog.
Thank you for subscribing should you decide to do so. Lots of other people are doing the same.
If you intend using this information for your trading please do your own due diligence, find the advice of a trading professional and trade at your own responsibility. The information provided is for educational purpose only. Please read the Disclaimer and accept all the risks. Thank you.
Have a good day