S&P 500 breaks down the up channel — possible scenarios inside
21 Apr 2020 recap — S&P 500 futures (ES) broke below the up channel since the bottom from 23 Mar 2020 and a key support level around 2750 with increasing supply, as spooked by the meltdown in oil price.
This is a change of character for the uptrend, suggests that the up move could at least stop for now, at minimum to go into a trading range if not reversing to test the the lower support levels.
Should S&P 500 commits above 2750, this would violate the bearish case and a trading range between 2720–2880 is likely.
Check out the video (7-min) below for a complete walk through of the daily market analysis of S&P 500 futures for 22 Apr 2020 trading session.
Bias — down.
Key levels — Resistance: 2780, 2800, Support: 2750, 2717, 2635
Potential setup — look for a test of the of the break down around 2775–2800 as entry. A rejection from this level could be a good entry for short. First target at the swing low at 2717, second target at 2635. Stop loss at 2805.
Click below to subscribe my weekly stock trading / investing ideas in email for free:
https://hot.wishpondpages.com/ideas/ (Yes, it is free)
Charting platform: Create a free account→ www.TradingView.com
Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.
