S&P 500 No follow through to downside — Daily Market Analysis

S&P 500 futures jumped up more than 1% during the London session, breaking the important key resistance level at 2850. Companies earnings results from Disney, DuPont, Electronic Arts (EA) and others are to be announced in the US session later.

Check out the video below for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 5 May 2020 trading session. In this video, I am going to show you the market recap on yesterday’s session on Monday including trade management review of an intraday trade, the bias going forward, the key levels to pay attention to, and the potential setup for the US session later.

4 May 2020 recap — S&P 500 was testing the gap resistance at 2810 for almost 3 hours. Yet, there was no follow through to the downside. Eventually it was resolved via a spring and rallied up in the last 2 hours to close at 2833.

On M3 intraday, ES was rejected at the gap resistance around 2810, which was a potential short entry . Yet, after three attempts to go lower, it failed to follow through to the downside and formed a higher low at the third push, which I exit the short trade. With the proper trade management strategy by reading the chart, I have managed to reduce…