S&P500 day trading course NY open looking at support and resistance for the morning. It looks like the market still has down side bias.

S&P500 day trading course NY open

Point of control for the day is 1080.50.  In the overnight session of the S&P500 emini we have tested down to 1070.50 where we can see some support coming in.

Below this we have an extreme low support of 1036.75 and one more at 1050.25 where we can have some previous consolidation.

1088 and 1119.25 are two open gaps to the upside.  High probability of getting one of these.

Volume on the daily has increased and as usual the increase in volume takes us down.

This could be a short term test down and the key will be through the prior swing low of 1050.50.  This is the level where the bulls will have to put in or else the next move down could be large.

S&P500 day trading course day trading levels on the S&P500 emini futures.

S&P500 day trading course daily

ON the daily we can see the areas of support and resistance.  Would not be suprised to see this test up to complete a pattern that would continue down on Tuesday or Wednesday.

S&P500 day trading course Daily chart with the “capitulatory sell off”?

S&P500 day trading course daily chart not capitulation

Capitulation normally occurs in a trend and would be in the over sold condition not in the over bought condition.

Capitulation means to surrender or give up normally after a loosing battle. In financial circles, this term is used to indicate the point in time when investors have decided to give up on trying to recapture lost gains as a result of falling market that has not retraced.

In other words, the investor has held as long as they can hold in a decreasing market.  They are at the point that if it goes any further they would “loose it all” so they throw in the towel.

This did have the high volume which is key to capitulation, but is not in the proper condition.

There are two conditions in the market, Over Bought and Over Sold.  In over bought the price is too high, when over sold the price is to low.

In order to capitulate, we must be in an oversold condition in a down trending market.  The market was clearly in an uptrend and therefore what we saw was not a capitulation but a correction.