2015 Trading Plan – Corona, Ca S&P500 extends gains on low volume and low volatility.
The S&P500 emini futures weekly trading chart is showing a very congested trading zone at the top of the market. The 5.4 million contracts traded is slightly above the weekly average but can be considered low volume. The previous weeks trading range is 54.3 points which is slightly above the average for the past 5 weeks. Last week the market ended in a Doji where sellers could not change the direction of the market and buyers did not make any real gains until Friday’s close.
Seems that traders are waiting for some decision around the Grexit or some other outlier to come to fruition.
2015 Trading Plan News for the week
- May 20, 10:30 Crude 2:00 FOMC
- May 21, 8:30 Initial Claims 10:00 Philly FED, Existing home sales 10:30 Nat Gas
- May 22, 8:30 CPI
The Daily Chart on the other hand is spotted with open gaps, low volume moves and signs of continuation to the next consolidation zone.
The daily volume on the S&P500 emini futures contract is under the moving average. The moving average on volume is also headed lower and lower. A rising market on low buyer volume is showing weakness. Although the official US Quantitative easing program ended last October, we can expect corporate buy backs and foreign banks to be buying in until the top comes in and there will be another correction.
There are 5 open gaps since the last correction. We look for 5-7 open gaps for each correction. Remember this is just a tendency. Don’t gamble on it. The next resistance at 2136-40 is our next target on the week and then moving into the next consolidation period if there is no correction.
This week could be a slow grind up if the news doesn’t send us rallying. Any news has been good news as observed last Friday, watch for Oil to consolidate too and for some weakness in Oil, Gold and Silver as the dollar reacts to the conditions in Europe.
Pressure is mounting on the Euro and we are seeing some hair trigger moves in trading, so watch your self. This next break out could take a lot of money out of the markets.
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