Sometimes the markets are more exciting than others. Regardless of volatility, you take what you can get from the markets; today’s breakout trade in the eMini S&P futures of taking a little when you’re only given a little.
A number of stock index futures had breakout setups for today. That included the eMini S&P, which had an inside day and NR7 patterns on Wednesday. This setup meant we would look for a breakout, directional move in the market today. For a breakout setup we identify nearby support and resistance points and look to enter a trade in the direction of movement, anticipating that it will serve as a springboard to a larger move in that direction.
For the June eMini Futures our breakout levels were 2348.75 (Wednesday low) on the downside and 2360.50 (Tuesday high). There was a move above the high early last night however I usually only take signals during stock market hours (8:30 AM to 3:15 PM Chicago time) so the signal was still in play for the day session.
The early morning move was higher, taking out the Tuesday high around 9 AM this morning and triggering our long entry. It made a double top as the session high of 2366.75, our first signal to take profits. A late morning selloff below the Tuesday high then gave a second long entry around 11:45 AM. This rally made a lower high, a sign of weakening upside momentum. It wasn’t much today, but that’s what the market offered.
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.
Risk Disclosure
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