A Fibonacci Buy For The E-mini S&P 500 - Forex News by FX Leaders

A Fibonacci Buy For The E-mini S&P 500

Posted Thursday, December 14, 2017 by
Shain Vernier • 1 min read

Sometimes markets behave without any rhyme or reason. Today’s action in the S&P 500 is a prime example of this phenomenon. The strong Import/Export and Retail Sales statistics from earlier should have been fueled yet another intraday bull market. Coupled with the FED acting as expected, the S&P 500 was primed to break new ground.

Of course, that has not been the case. Although the fundamentals are strong, the U.S. indices are slightly in the red. The March E-mini S&P 500 futures contract is taking it on the chin, running towards a key support level.

E-mini S&P 500 Technicals

The primary challenge that faces active traders is timing. Knowing when to act on signals, indicators or fundamentals may be the most important aspect of making money in the markets. As of now, those holding intraday longs in the E-mini S&Ps are getting hit.

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

In such a long-term bull market, being on the lookout for premium buy entries is a good idea. As long as this week’s swing high of 2675.25 holds, buying in from the 38% Fibonacci retracement of 2655.25 is a premium entry.

Bottom Line: For the remainder of today and Friday’s session, longs from 2655.50 in the March E-mini S&P 500 provide an opportunity to get in on the long-term trend in U.S. equities. With an initial stop at 2649.75, a 1:1 R/R trade management plan produces a 27 tick return.

As always, trade smart and watch your leverage!

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About the author

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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