S&P 500 futures potential supply absorption — daily market analysis

S&P 500 futures gained 0.8% during the London session as the oil prices recovered some ground as US crude inventories rose by less than expected, after the data was released from American Petroleum Institute.

Check out the video below for a complete walk through of the daily market analysis of S&P 500 futures for 29 Apr 2020 trading session. Close to the end of the video, I answered a question from reader regarding how to initiate short entry after an up thrust by revealing yesterday’s intraday trade.

28 Apr 2020 recap — on the daily chart, S&P 500 futures had an up thrust of the swing high at 2885 as anticipated in my previous post, tested the supply zone near 2916, had a reaction to pull back to 2851, which is a support level and closed at 2867.25.

Despite the up thrust movement was accompanied by increasing of supply, the results was not bearish. This could favor a supply absorption scenario where I expect higher target prices for S&P 500, while climbing the wall of worry. I anticipate S&P 500 to settle within the trading range between 2850-2910 before heading towards higher targets.