S&P 500 day trading course

Day Trading S&P 500 Chart

Hi Traders,we are moving to the double top of 2000 & 2008. Is why on this post, I will use S&P 500 Index, to show you what’s going on and talk about Market Movement.

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First Part: Will be about Market Movement with S&P500

Second Part: Is about Targets on ES 1440 charts for next week.

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First Part

Day Trading Monthly Movement of Market

Day trading Monthly Chart

Dark Green Trends Lines: This is to show you how confident Buyers was few month ago.

Lime Green Trends Lines : As you can see…after 1300 points, Sellers and Buyers are more careful. and we have more consolidation zone, and almost every time, we have important unsupported price.

RED Trend Line: Buyers may pass this trend line, but if they don’t close above, expect sellers get in and with a lot’s of commitment.

Dark Line: 1st one, is  a double top, that buyers need to pass, to make a Higher High level. If they achieve this, Next long term target will be ~1530.

Day Trading Weekly Movement of Market

Day Trading Weekly

On this chart, we can see Buyers getting in the market before we go to 50MA and touch are trend line. I don’t know if they was to exited about “fixing” Fiscal Cliff for 2 months or they party to much on New Year.  However…Buyers are better close above my “Red Line” if not, on weekly chart, we may go back to MA50 and MA 200.

Day Trading Daily Movement of Market

Day trading Daily Chart

On Daily chart, we can see that before buyers let sellers get in, and respect 50% Fibonacci retracement. This time, buyers get in the market way to fast. With not much volume (you will see on my next ES 1440 charts). They didn’t close above the double top, not even touch it, miss it by 2points.
We close on “Doji” candlestick. Buyers better get in market and show some STRONG commitment if not…they will regret  this last “RUSH“.

Conclusion for Market Movement on S&P 500 US Index:

What I can see, if we put all those 3 charts movement together.Buyers, are less confident now than few months ago. And start to lose discipline.Sellers are more likely waiting the perfect moment to get in and pay back for buyers lack of discipline.

 Second Part:

Day trading Chart of Targets for next week on ES E-mini Futures.

Day Trading ES 1440m Targets Chart

After week of consolidation, I don’t see any long term consolidation for next week, but won’t be surprise if we do get one. Is why if you take any trade next week, I will suggest to keep your targets close to your entry points … be always ready to get out if it doesn’t go your way any more.
This Week I’m Neutral ( because we have to many double top after this one, I will be more Short than Long.)

PS: VOLUME: As  you can see ES 1440(Daily), Buyers keep pushing Up, and “Rushing” with less volume than before.

Thank you and have a great week traders

PS: Day trading is not easy,we are in dangerous zone now, I don’t recommend to get in the market now, if your not well educated about Market&Trading.

January Trend Trading is set for the Year – Futures Trading

January Trading Trend is set as the market price increased for the first trading week of January.

January’s first five days of trading normally sets the pace for year. Looking at the weekly chart on the S&P500 emini futures for the first five days of trading we can see how the S&P500 hit support and moved up with no sellers really stepping in the way.  Presently we are testing the swing highs  with support coming in at 1430 and 1400.

Market volume was low in the S&P500 emini futures last week with 5.4 million contracts trading hands.  This is low for thee week so we could either see this consolidate at the highs or a retracement to 1427-30. On the weekly this could chop around in the top half of the 50% retracement of this past weeks priced action putting the support from the swing high down about 31 points or to 1431 area.

The Fiscal Cliff which is discussed extensively on News and other media has dampened the investors willingness to buy into the markets as we can see in the dwindling volume.

If we end up in a Doji, where open and closing price are the same (or close to it) for the week, then I would be looking for a continuation this next week.  Watch out for low volume periods in the afternoon as this is when Market makers could take out your stops very quickly.

January Trading on the Daily Chart, S&P500 Emini futures.

The daily chart on the S&P500 emini futures is showing weakness on the move to the swing highs.

There is an open gap at 1427.50 from the New Years eve close.   This  open gap is not to far away so there is a possibility of price moving to close this gap before a continuation in the trend from the first full trading week.

We see support at 1443 and 1432 as well as at the open gap of 1427.  If price breaks through these supports, then watch for the sellers to test the 50 moving average and then to the 200 day moving average at 1380.  It would not be unusual to see the test down before continuing in the direction of the major trend.

Also note the declining volume on this move up which shows decreasing commitment on the buyers side to keep price moving up.

Remember, although the buyers are moving back into risk positions in stocks and more, you could see a slight sell before the move up.  If buyers do take control and push through the resistance at the swing highs, our next short term resistance is 1472.50 then 1485 and then the psychological 1500 which the market is so hungry to see.  Just because businesses are showing a bounce from the recessionary levels from the financial crisis we are seeing a decrease in the “family economy” that was built up in the 2002-2006 bull market.  The key fixture missing from the recovery is the increase in home prices, which unfortunately will come at the expense of inflation in food and other goods as interest rates have been held set close to zero.

CHART GOLD AND CHART S&P500 Day Trading 17-21 December 2012

HI I have to remove my post with targets explanation.

One trader make me realize I did not change “expiry date” for my futures.

My direction still “Long for both, S&P500 and Gold”

but, because my work was done on old futures contract expiry date…they are not as precises as us to be.

Thank You