The updated S&P 500 Futures trading plan for May 20 highlights important resistance and support levels. Resistance appears at 5,960, with a target range of 5,977–5,994 based on Fibonacci levels. Key support points are at 5,904 and 5,926.75, which connect with the retracement and base level around 5,870. The market shows a confirmed bounce, with prices respecting the 5,904 Point of Control (POC) line. The VWAP band now serves as support, indicating strong buying interest. If prices rise above 5,960, momentum could shift upwards towards the Fibonacci range of 5,977–5,994.

Bullish and Bearish Strategies

For bullish strategies, staying above 5,926.75 signals an entry, aiming for targets at 5,960, 5,977, and 5,994, with a stop loss just below 5,904. A breakout above 5,960 allows for a more aggressive strategy, targeting up to 6,038, with a stop at 5,940. Bearish strategies include shorting if there’s a reversal between 5,960 and 5,977, targeting 5,870, with a stop above 5,980. If the price drops below 5,904, more decline opportunities may arise, with stops at 5,920. Executing trades should focus on confirming volume at entry points, keeping risk to 1% of capital. Set alerts at crucial levels for timely responses.

Current Market Observations

Currently, prices have stabilized above the important 5,904 level. This shows strong buyer interest and indicates that previous support levels hold firm. This area, historically linked to high volume, is forming a stable base, evident by the behavior around this POC. Recent price movements reveal strengthening volume-weighted average price (VWAP) dynamics beneath current levels, transforming previous resistance into support. This indicates active buyer pressure in the market, making the range between 5,926.75 and 5,960 critical to watch in the short term. As a result, the focus now shifts to levels above. Momentum traders should monitor for price action that breaks 5,960 and moves into the 5,977–5,994 range. This area, based on Fibonacci projections, is responsive to earlier price corrections. If price enters this zone with strong volume support, the potential to extend to 6,038 increases significantly. This would favor strong long setups, with tight stops set below 5,940 to manage risk. Meanwhile, those taking a contrarian approach should pay close attention to the zone between 5,960 and 5,977. This range has historically triggered reversals, especially as daily metrics tend to react to overshoots here. Therefore, considering small exposure fades into strength might be viable, with stops placed just above 5,980. If selling pressure returns and we decisively drop below 5,904, the next likely reaction zone will be 5,870. We should expect liquidity to focus here, as it’s been a significant retracement base in the past. Retesting this area might indicate further weakness, suggesting a strategy of following bearish momentum rather than betting on bounces. Sell-side positions in this situation should be protected with stops near 5,920, close to recent volume activity. Effective risk management is essential. Keep positions modest. The goal isn’t to chase every move but to spot sessions where volume and price align with the market’s direction. Alerts set near 5,960 and 5,904 will enable quicker responses when entry patterns align. Until then, patience and clear trade structure will yield better results than premature positions. Volume confirmation at key levels is crucial. Without it, entry quality declines, and the risk of slippage rises. Coordination between market profile structure and short-term order flow will help confirm these pivots, which we will keep watching in the upcoming sessions. Create your live VT Markets account and start trading now.

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