Presence of supply in S&P 500 with a pattern failure trade setup

Supply was presence yesterday in S&P 500 futures (ES) as seen in the rejection tail, tight spread and expanding volume. 3230 level should be the first defending level to watch should a reaction come.

Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 22 Jul 2020 trading session. In this video, I am going to show you the market recap on the last session, plus a potential trade review in the M3 timeframe (including entry, exit and the rationale behind) during the US session based on a cup and handle pattern failure. Going forward, I will cover the bias, the key levels to pay attention to, the potential setup for the US session later.

I encourage you to watch my daily market analysis video yesterday if you haven’t in order to better relate to the market recap and the trade review.

Bias — neutral (Day trading); bullish (long term)

Key levels — Resistance: 3310; Support: 3230, 3170–3180, 3105

Potential setup — Look for long entry after a test or spring of the previous day low near 3240.