S&P 500 trade review — a simple breakout, test and reversal trade

Yesterday S&P 500 futures (ES) was in a tight range trading near 3380 resistance level with decreasing supply. Overall, I still favor a supply absorption scenario for S&P 500 to test the all time high level near 3400.

Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 18 Aug 2020 trading session. In this video, I am going to show you the market recap on the last session and a trade review in the three-minutes timeframe (including entry, exit and the rationale behind). The trade was based on a simple and straightforward breakout, test and reversal trade. Going forward, I will cover the bias, the key levels to pay attention to, the potential setup for the US session later.

Check out my daily market analysis video on last session if you haven’t in order to better relate to the market recap and the trade review.

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

Key levels — Resistance: 3385–3400; Support: 3373, 3360–3365, 3320–3330, 3300, 3273, 3230

Potential setup — Look for potential long near 3373 upon a rebound.