S&P 500 trading range with a bias to show further weakness

22 Apr 2020 recap - S&P 500 futures ( ES1! ) tested support level at 2800 and gave back the gain during the London session while digesting the volatile oil trading session and waiting for US jobless claims report later.

The rally from yesterday has shown rejection twice from level 2800. It is worth to note that the rally also tested the up channel, which becomes a resistance trendline.

It is expected for S&P 500 index to have a swing down to at least test 2750 or the swing low at 2715 if it is weakening.

Should 2715 be broken, we should see a test at 2625, which is an important support level for S&P 500 futures.

So far, I expect the price to spend some time within the trading range between 2715–2800, with a bias to break below 2715.


Bias - down

Key levels - Resistance: 2800, 2830 Support: 2750, 2715, 2625

Potential setup - look for a rejection from 2795–2805 to short. Else a break below 2773 with a weak rally up could be another short entry. First target at the swing low at 2715. Stop loss at 2810.