S&P 500 reversal — start of a meaningful correction led by NASDAQ?

Yesterday S&P 500 attempted to up thrust the prior swing high formed in 8 Jun 2020 followed by strong last hour sell off with increasing supply while NASDAQ had a key reversal bar retraced back to the channel after rallying into overbought condition. Could this be the start of a meaningful correction for the major indices?

Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 14 Jul 2020 trading session. In this video, I am going to show you the market recap on the last session, plus a trade review in the M3 timeframe (including entry, exit and the rationale behind) that held from London session to US session. Going forward, I will cover the bias, the key levels to pay attention to, the potential setup for the US session later.

I encourage you to watch my daily market analysis video yesterday if you haven’t in order to better relate to the market recap and the trade review.

Bias — bearish (Day trading); bullish (long term)

Key levels — Resistance: 3180, 3230, 3310; Support: 3140, 3105, 3060–3080

Potential setup — Look for rejection around key levels to short.