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Day trading walk through in S&P 500 futures with trading plan
S&P 500 futures (ES) rose more than 1% to test 2800 psychological level in the Asia session, ahead of the earnings season, which is set to kick off later today.
High volatility is expected as majority of the companies are affected by the COVID-19.
13 Apr 2020 recap — on the daily chart, S&P 500 futures had a reaction with lower volume on top of a demand tail, suggests that the supply is minimal and there is demand come in after pull back to the support level near 2700.
As per my previous post, it is possible for S&P 500 futures to inch up until emergence of supply. It is important to note that this rally under the background of lacking of supply. Until there is evidence of increase of supply, ES should climb to the next resistance level, which is 2850 and 2900.
Bias — bullish when it is above 2700–2750
Key levels — Resistance: 2800, 2850 Support: 2750, 2700, day high
Potential setup — look for a test of support area around 2770 to long, or a potential short entry after a test or up thrust of the swing high near 2800.
For day trading on smaller timeframe such as M1, M3, M5, it is important to pay attention on how the price interacts with the key levels, swing high, swing low, and to…
