Trading futures SP500 weakness – the start of a major correction?

Trading futures on this past weeks news normally wouldn’t have any one selling this type of widely held market. The unemployment data was good, everything seemed to be in line, yet there was weakness going in to the latter part of the week with lower and lower buyer volume.

S&P500 emini futures is at a major support before a continuation to 1900 and a further sell off target of 1865.  If the buyers do step in for a partial retracement we are looking for levels at 1935-37 for resistance.  If there is some seller’s pressure from the Asian markets and a weak open in Europe we could see the markets hit resistance at 1931 and head lower.

Trading futures is very risky.

Make sure you have practiced and know what you are doing.  There are many settings in the market place which you can see the tendencies of the market.  Watch for a quick reversal in the AM.  Although there was large selling volume, we don’t know if this was capitulatory and we could see heavier selling.  There is a good chance sellers will test the previous swing lows.

We have marked a few of the areas for support and resistance and looking for basic patterns to swing through these.  The previous major sell off gave us a 120 point swing.  Price action consolidated for a few days then made the second move down before continuing the long term bullish trend.

Don’t forget, we are in a Bull trend, for the long run and we have yet to invalidate the trend or give  a clear topping pattern.  Trading futures with a group that speaks the same trading language and has the same trading psychology training creates a very collaborative environment.  Join us in Calgary or Montreal this fall.