In last night’s Swing Trader’s Insight we noted that the eMini S&P futures had a Taylor Trading Technique Buy day signal for today as well as a breakout setup (NR7 day yesterday). In today’s STI morning watch list we reiterated the buy signal, noting that the breakout setup could lead to a large rally this morning.
The eMinis made the textbook Taylor Trading Buy day move overnight as they rallied after a successful test of the previous day low (the Buy day reference price). By the time we got to the day session the market was already well above our reference price. This could give us confidence in trading from the long side today however we would need to find alternate setups.
In the STI morning watch list we suggested watching the 1878.00 level as a pivot point. This was a 50% retracement of the move from Monday’s high to last night’s low; a sustained push above that level was likely to lead to a larger rally with Monday’s high as the final objective.
After the 8:30 open the market made a move up to an opening range high of 1885.75. A subsequent selloff made a successful test of the 1878 level with an ensuing rally. Traders could look to buy either on the recovery back above 1878 or above the early high of 1885.75 (On breakout days we look to buy into impulse moves as we look to take advantage of the market’s dominant momentum for that session.)
S&Ps pushed higher over the morning. Around 11:35 AM they made a session high of 1899.50 and the one tick new high at 12:25 PM was a signal to take profits. They subsequently tailed off as the afternoon wore on, having rallied 48 points off the low and just below the psychological 1900 level.
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Essential Guide for Futures Swing Trading
In this guide, experienced trader and broker Scott Hoffman explains the trading methods he uses to analyze and trade the futures markets and to publish his trade advisory, Swing Trader’s Insight.
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