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

Trading 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.