S&P 500 further weakness ahead after the false breakout — Daily Market Analysis

S&P 500 futures dropped 0.7%, testing the psychological support level at 2800 during the London session as the US-China tensions came back in addition to the Coronavirus pandemic.

Check out the video below for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 4 May 2020 trading session. In this video, I am going to show you the market recap on last Friday session, the bias for swing and intraday trading, the key levels to pay attention to, and the potential setup for the US session later.

1 May 2020 recap — We have seen continuation of the pullback for last Friday session, which broke the key support level at 2850. In my previous post, I mentioned a potential short entry around 2850–2860 if S&P 500 showed inability to rally up above this area, which worked out very well for an intraday trade.

Currently S&P 500 is filling the gap created this morning over the weekend. This coincides with the day low from last Friday, which acts as a resistance level.

Since the key support level at 2850 is broken, I expect further weakness in S&P 500 to test the swing low around 2715. Again, should 2715 be broken, 2635 is the…