Sell off in SP500 threatens psychological support

Sell off in the S&P500 emini futures is challenging the Psychological support at 1300. Buyers are wondering if they can hold this position any longer. Will they have to sell?

Click on the chart to get a better view. The S&P 500 emini futures day trading course is looking at areas of support and resistance. Be aware and Beware - Trading futures is high risk, don't listen to anyone's opinion. Do your own home work and be sure to keep your money away from this market if you are not using a stop.

Psychological Support is 1300. Watch out below as Buyers may not be able to hold.  Point of Control for May 18 is 1302.75 with a downside target of 128.025 then 1265-68.

This is the finish to the video I put up last night.  The after hours close on the S&P500 emini is just on the 1300 psychological support.  Watch out for the talking heads.  If they bring in the doom sayers "market is heading to 666" then I will watch for a headfake to 1265 and some capitulatory volume. As mentioned the EURUSD and the Dollar index are running against each other and we are headed to  Their respective support and resistance lines.   Trade what you see and never listen to the so called experts. If you can't see the direction of the market and don't understand how to use a stop, then don't trade. Never take stock tips, and if it is on the TV as a hot pick, it is too late. Day trading course focusing on the S&amp;P500 emini futures support and resistance and <a style="text- [...]

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Consolidation in a bottom range - Day trading course

Consolidation in the S&P500 emini futures as a major support has been reached.

  Watch the bounce this am off support and could see some price failure then a move up. Depending on what occurs with the dollar index and Europe we could see a bit of a break on this move down. Trade what you see and never listen to the so called experts. If you can't see the direction of the market and don't understand how to use a stop, then don't trade. Never take stock tips, and if it is on the TV as a hot pick, it is too late. Day trading course focusing on the S&P500 emini futures support and resistance and efficient market hypothesis which states that stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in trading.

Day trading course looks at price and direction, the support and resistance and the direction of the market.

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Day trading course - SPY (ETF)

[caption id="attachment_5167" align="alignleft" width="300" caption="Day trading course l 866-640-3737 l learn how to daytrade l Day trading education"][/caption] Trading the ETF (SPY) in the trading course live room. The ETF - SPY has been in a bearish trend with price action hugging the lower trendline. If the sellers keep pressuring price to test support at the bottom trendline, a pierce and breakthrough of support may occur to drive price to lower lows past this bearish trendline. If conditions go into the oversold area, buyers may come in to fuel a rally to the upside to test the resistance levels. The first target is 133.79. The next targets are 135.06, 135.89, 136.67, 137.65, 138.94, 140 and on to the outer resistance target of 140.64. Trade What You See

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Day trading education day traders wondering if it is safe.

Day trading education - is it safe yet?  Day traders are standing on the side wondering if the markets are going to turn at these levels of support.  The over all question is , "is it safe to get in yet?"

The S&P500 emini future is showing support after it's five previous days down and a test to 1340. Day trading Education - looking for major patterns on the S&P500 emini futures.  If we are seeing support at 1345 with a test to 1340 we could have an inverse Head and Shoulders forming.  There are two scenarios that could easily play out. A move to 1375-81 where the move fails and it becomes then a continuation to the down side, or the other scenario with an extension of the move to close the open GAP at 1400. Watching for this to close today under the 1365 support The open Gap could be the initial target, If this forms a spike, luring investors in then we might have enough money on the table for a sell off. At present price levels between 1345 and 1355, it shows up mostly as price failure on he longer term charts with overnight price structure as a consideration. 1365 would be the point of control for the move up. The Markets seem like they decided to "just take a break this AM" as JPM courageously said they have made a mistake.  Their 2 billion in initial losses will be unwinding a position that is going against them and their "hedge" is worthless. So it seems reasonable to say that the after math of this will be obvious only after JPM unwinds this position [...]

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Day trading course - consolidation

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Trading the S&P500 emini futures contract in the S&P500 day trading course live room.

There is a wide range and consolidation between support at 1390 and resistance at 1411.75. After the rally up to the peak at 1411.75 there was a retraction to the midpoint at 1402 with an extended touch and test of support at 1400. With a last test of resistance at the 50SMA there was a breakthrough of support to touch and test the 200SMA, with a subsequent correction down to earlier levels of support before the rally. A touch and test of the support level at 1390 brought in buyers to bring pressure to edge upward to test resistance at the 50 and 200SMA levels.

     At this time in indecision, if buyers come in the first target is 1400. The next target is 1402.50 on up to 1406.50 and to the peak resistance at 1412.

If sellers come in there will be a draw down to test support at the first target of 1397.50. The next targets are 1395.50 and 1394. the lower targets of support are 1391.75 and 1389.25.

Trade What You See

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Day trading course - consolidation - showing weakness

Day trading course looking at consolidation in the market and the weakness as large money is not in the market.

As mentioned in our day trading course and in numerous posts, the market makers make direction in the market.  We are looking for where the market makers are committed to buy.  The CFTC or the Commodity Futures  Trading commission releases the composition of open interests for Futures Markets.  I normally do not rely on Data from the CFTC but it shows that the Long positions in the market place are held by small speculators.  This is not an encouraging sign for the Market as there is a decreasing number of Net Long positions held by Institutional traders.  (BUYER BEWARE)  Normally the fast innovators in the market playing against Distribution in the consolidation phase will be fished out as investors are normally late into the selling and will sell into the momentum of a short term head fake (to the downside), as Market makers are putting in their next buys into the market. Remember the saying, "Go away in May."  Well, this could be the start of a declining market as light volume in this top side consolidation bounces off of lower highs.  Contrarily, we are in a bullish trend, this could be an area of Consolidation where the market makers are distributing after a long run up, where a correction could be the next buying opportunity.  Watch out for sell offs in this light volume and always use a stop.  If you are not experienced trading th [...]

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Day trading course - testing channel

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Trading the S&P500 emini futures contract in the S&P500 day trading course live room.

After a time testing the resistance at the upper trendline, a final test brought sellers in to pressure price down to test support at the 50SMA. A final push down to test the lower trendline ended in price failure with a Doji, then a break to the upside to hang out around the 50SMA once again. With a breakthrough  of resistance at 1389.25 a rally ensued to the upside to test resistance at the top trendline. With resistance holding fast, a drop to the downside due to sellers pressure again to bring price to hang around the 50SMA, ranging between support at 1389.50 and resistance at 1393.25, with a midway at 1391.50.

    If buyers keep the pressure on the first target is 1395.25 onto 1397.50, 1399 and then to the upper trendline.

If sellers come in, they will bring downward pressure to test support at the first target of 1393. The next target levels of support are 1391.75 and 1389.25 ( which coincides with the 50SMA and the lower trendline) stronger support? ... from there next targets are 1386.50, 1384.25, 1381, 1378 and on down to the outer level of support at 1373.75.

Trade What You See

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