U.S. Cash Open Brief-Trading Plan For The S&P 500

Posted Thursday, November 2, 2017 by
Shain Vernier • 2 min read

The S&P 500 is trading near all-time highs, threatening to extend the year-long uptrend of 2017. As I mentioned on Tuesday, we had a three-session pennant formation develop on the daily timeframe for the S&P 500. Wednesday it broke to the bull, producing over a 30 tick run.

Properly playing chart patterns is a great way to gain market share. If a pattern is evident and participation is robust, winning trades are often the result. Stay tuned to FX Leaders for analysis and trade setups facing a wide variety of chart patterns.


E-mini S&P 500 Technicals

Today’s trade of the U.S. indices will be interesting in the wake of yesterday’s Federal Reserve announcements. Earlier this morning, Jobless Claims came in below expectations and Nonfarm Productivity outperformed estimates. In short, more positive U.S. metrics.

ES DailyDecember E-Mini S&P Futures, Daily Chart


Since the pennant breakout, we have seen whipsaw trading in E-mini S&P 500 futures. The plan moving forward is simple: capitalize upon the macro trend!

Here are a few support levels that will serve as potential long entries:

  • Support(1): 20 Day EMA, 2558.00

  • Support(2): Daily SMA, 2553.00

  • Support(3): Bollinger MP 2551.25

Bottom Line: Currently, the December E-mini S&P 500 contract is pushing intraday highs, near 2576.00. Yet again, we are seeing considerable strength in U.S. equities on the cash open. For today, I will be buying in at the support zone if the opportunity presents itself. Longs from the 20 Day EMA at 2558.25 will serve as tight 1:1 R/R scalps, looking for 5-10 ticks.

The premium intermediate-term position long is from the Daily SMA, 2553.00. Entry will be shaded three ticks (2553.75) to ensure that the trade has its best chance of being elected. A stop at 2549.75 sets up a 2:1 R/R trade for 32 ticks.

As always, trade smart and watch your risk management!

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