Poor U.S. Housing Data Produces An S&P 500 Long Entry

The U.S. New Home Sales figures came out a bit earlier and were definitively negative. New Home Sales came in at 571,000, down from 630,000. This number surprised analysts as the change came in at a -9.4%, under projections of 0.3%.

As a result, we may have a nice intraday long for the September E-mini S&P 500 contract.

Trade Idea: E-mini S&P 500 Futures

The New Home Sales numbers were dreadful. But, so far, the S&P 500 is hanging in there.

September E-mini S&P 500 Daily Chart

Key levels on the daily timeframe:

• Topside resistance at 62% 2451.75 and 78% 1261.00

• 38% of three-day rally 2439.75

• Bollinger Band MP at 2452.00

The Trade: So far we have seen the E-mini S&Ps trade above yesterday’s high by 2 ticks. There is heavy resistance in this area of the 62% and Bollinger MP. A test of the 38% retracement of the current three-day bull run is today’s low.

I am optimistic on a return to the resistance levels. A long from 2445.00 with a stop under the intraday low at 2438.50 is a good location for an intraday long. I will be holding the position looking for a return to resistance at 2151.75.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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