Yesterday, I issued a recommendation to go long in December E-mini S&P 500 futures from an intraday Fibonacci retracement level. Market sentiment was bullish, and the trade looked to be a great opportunity. Unfortunately, a whipsaw market driven by news events ruined a good looking setup.

To be stopped out before a market reversal is one of the most frustrating aspects of active trading. But, through practicing proper risk management, we live to fight another day.

Technicals

There are several robust support levels for the S&P 500, depending upon Wednesday’s high remaining a valid high water mark.

December E-mini S&P 500 Futures, Daily Chart

Key support levels for December E-mini S&P 500 futures:

• 38% retracement of September’s range at 2484.25

• Bollinger MP at 2483.75

• 50% retracement at 2476.50

• Daily SMA 2475.50

Also, the 20 day EMA is around the 2489.00 level. This is a rapidly updating indicator. If price action comes off from current levels, it will move towards our 38% retracement.

Bottom Line: As of this writing, price action is bullish, threatening Wednesday’s high of 2509.25. In the event that this level is not violated, our support levels remain valid. I look for a buy from the 38% level of 2484.25 and stop below 2476.50 as a good location to play this market to the bull for a 1:1 R/R.

As of now, the S&Ps are trading in a tight range. It will extend as we move into the U.S. session close. Let’s stay patient and rack up a few ticks!