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Weekly trading plan – pullback SP500 Inside day

Trading plan sp500 written trading plan


Corona, Ca weekly trading plan SP500 emini futures on a re-tracement and low volume inside day.

Trading plan sp500 written trading planTrading plan for the S&P500 emini futures. Price has moved into the next Price projection block from 2090 to 2203. The sellers moved in on Tuesday testing the support and almost closing the gap which is laying at 2091, very close to the 50MA, which could be added support.

The seller volume spiked and moved up to 1.54 million contracts traded showing some volatility with the buyers coming back in at support keeping the market above 2100.  The market was closed in the US on Monday and Tuesday when the market opened we had sellers committing to this small move down.  Wednesday price action on the open had a small test down and then the buyers moved in to bring the market up 17 points.  If the market closes above 2123 today we could have a powerful buy pattern as the buyers would have engulfed yesterdays price action.

The price projection to 2140, then to 2165 is still open.  We will see where buyers stand going into Friday’s session to see if there is room for new highs.

Remember this is a widely held supported market.  The US is not in quantitative easing but other countries are and with institutional buy backs at an all time high it seems this bull market still has direction.  A 20 to 40 point pull back is not the signal to the end.  A correction, which is normally assumed to be 10% correction in price would put us at support above 1800 which looks like the line in the sand for control in this market.  This market is very risky and only use risk capital to trade it.  Do not trade unless you know what you are doing.  When corrections in the market occur, they occur quickly and Market Makers, take the profit out of the market, and normally that means any retail traders.

Having a written trading plan is helpful to be able to analyze your work.  If you don’t understand how you analyze and look at the market, you will not experience improvements in your risk management and your ability capitalize on market price action.  You don’t have to take every trade, there will always be another trade.

S&P500 Extends its gains with low volatility 2015

daily trading plan sp500 low volatility


2015 Trading Plan – Corona, Ca S&P500 extends gains on low volume and low volatility.

low volatility 2015 trading plan The S&P500 emini futures weekly trading chart is showing a very congested trading zone at the top of the market.  The 5.4 million contracts traded is slightly above the weekly average but can be considered low volume. The previous weeks trading range is 54.3 points  which is slightly above the average for the past 5 weeks.  Last week the market ended in a Doji where sellers could not change the direction of the market and buyers did not make any real gains until Friday’s close.

Seems that traders are waiting for some decision around the Grexit or some other outlier to come to fruition.

2015 Trading Plan News for the week

  • May 20, 10:30 Crude 2:00 FOMC
  • May 21, 8:30 Initial Claims 10:00 Philly FED, Existing home sales 10:30 Nat Gas
  • May 22, 8:30 CPI

The Daily Chart on the other hand is spotted with open gaps, low volume moves and signs of continuation to the next consolidation zone.

daily trading plan sp500 low volatilityThe daily volume on the S&P500 emini futures contract is under the moving average. The moving average on volume is also headed lower and lower. A rising market on low buyer volume is showing weakness. Although the official US Quantitative easing program ended last October, we can expect corporate buy backs and foreign banks to be buying in until the top comes in and there will be another correction.

There are 5 open gaps since the last correction.  We look for 5-7 open gaps for each correction.  Remember this is just a tendency.  Don’t gamble on it. The next resistance at 2136-40 is our next target on the week and then moving into the next consolidation period if there is no correction.

This week could be a slow grind up if the news doesn’t send us rallying.  Any news has been good news as observed last Friday,  watch for Oil to consolidate too and for some weakness in Oil, Gold and Silver as the dollar reacts to the conditions in Europe.

Pressure is mounting on the Euro and we are seeing some hair trigger moves in trading, so watch your self.  This next break out could take a lot of money out of the markets.


May 12, 2015 Weekly trading plan SP500

daily price action daily chart with closed gap


May 12, 2015 Corona, Ca Weekly trading plan on the S&P500 emini futures with weekly chart, daily chart and a look at the effect of weekly long term price targets and range are in effect.

weekly trading plan weekly chartPrice action on the weekly chart can be seen in many areas, first by looking at the candle stick and seeing the range from the high to the low which this past week was 44.25 points, just under the 49.10 average range for the past 5 weeks.

So what does this mean for our weekly trading plan?

The previous three weeks sellers moved in and brought price down to support at 2035, then this week the buyers have moved in bringing price to a high around 2108. We broke through the resistance at 2073 and 2084 on the daily chart and clears the way for a test to previous swing highs of 2018.

Looking at average range of 49, for the past 5 weeks with a decrease in volatility, this would tend to show that the high we could reach this week from a low of 2060 is short of the high at 2109 projection.  Volume is increasing which could effect the range as when weekly volume increases there is a tendency to see larger price ranges.  We are going to need more volume commitment from the buyers to see this break to new highs.  If we see buyers moving in on increased volume we would look to buy the dips for our weekly trading plan after we see reversal patterns from last weeks sellers control.

Daily Price Action on the S&P500 emini futures contract for this week.

daily price action daily chart with closed gapThe daily chart on the S&P500 emini futures contract is showing buyers moving in to control after Monday’s loss of control to the sellers. The bottom was confirmed in this move with the touch of the trend line at 2081 which is the 50MA. If the day ends in a doji or a buyers hammer (where price closes higher than the open), then we will look for a continuation of this short term bullish trend in to the week.

You might note that the equidistant green box is coming to it’s end and we are about to enter the next phase of the move until the next green price projection box.  We don’t know if price will close another gap at 2012 and confirm off of the 200MA, or if buyers will stay in control taking it to new highs.  The equidistant move would be a projected high of 2140 which is the mid point in the price projection box for the next consolidation period.

Remember to do your own analysis, and if you are following the crowd you might be falling into a market maker trap.  Manage your risk first and make a written weekly trading plan.  This will allow you to reflect on your own analysis.


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