Poor U.S. Housing Data Produces An S&P 500 Long Entry
Shain Vernier • 1 min read
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.