S&P 500 potential supply absorption daily market analysis
Check out the video above for a complete walk through of the daily market analysis of S&P 500 futures (
ES1!) 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. Check out yesterday's idea where I mentioned anticipating an up thrust scenario below:
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.
If S&P 500 commits below 2850, this will violate the supply absorption scenario.
Bias - neural to up, down (when below 2850)
Key levels - Resistance: 2913 swing high, 2980 axis line Support: 2850 swing low
Potential setup - a test or spring of the previous day low near 2852 could provide a good long entry with an immediate take profit target at 2910. A stop loss could be conservatively placed below 2842 or using smaller timeframe for tight stop loss.
ES1!) 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. Check out yesterday's idea where I mentioned anticipating an up thrust scenario below:
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.
If S&P 500 commits below 2850, this will violate the supply absorption scenario.
Bias - neural to up, down (when below 2850)
Key levels - Resistance: 2913 swing high, 2980 axis line Support: 2850 swing low
Potential setup - a test or spring of the previous day low near 2852 could provide a good long entry with an immediate take profit target at 2910. A stop loss could be conservatively placed below 2842 or using smaller timeframe for tight stop loss.
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