The S&P 500 Futures trading plan, updated for May 20, details key resistance and support levels. Resistance surfaces at 5,960, and a target zone lies between 5,977–5,994, based on Fibonacci levels. Support points include 5,904 and 5,926.75, linked to the retracement and base levels at 5,870.

The market context suggests a confirmed bounce with prices respecting the 5,904 POC line. The VWAP band now acts as support, indicating strong buying interest. A break above 5,960 could trigger upward momentum towards the 5,977–5,994 Fibonacci region.

Bullish and Bearish Strategies

For bullish strategies, holding above 5,926.75 signals entry, targeting advances to 5,960, 5,977, and 5,994, with a stop below 5,904. Alternatively, a breakout above 5,960 supports an aggressive approach, with targets extending to 6,038, and a stop at 5,940.

Bearish tactics include shorting on reversal around the 5,960–5,977 range, aiming for targets down to 5,870, with a stop above 5,980. A break below 5,904 suggests further decline opportunities, with stops at 5,920.

Execution emphasises volume confirmation at entry points, capping risk at 1% of capital. Alerts are set at strategic levels for prompt action.

Current Market Observations

We are currently observing a segment where price has managed to establish stability above the key 5,904 threshold. What this confirms is not merely buyer interest, but also that previous support levels are being respected with some conviction. This area—previously tied to high-volume action—is beginning to form a reliable base, as evidenced by the behaviour around this point of control.

The recent price action should not be overlooked—it indicates that volume-weighted average price (VWAP) dynamics are strengthening below current levels, turning what was resistance into a soft floor. This means buyer pressure is actively sustaining the market, and the zone between 5,926.75 and 5,960 becomes a highly watchable region over the short term.

Given that, the immediate focus shifts to the levels above. Momentum traders should be watching for activity to tip through 5,960 and sustain motion into the 5,977–5,994 bracket. This band is drawn from Fibonacci-based projections and acts as an upper cluster responsive to earlier corrective moves. If we see price filter into that area with volume support, the scope for extension as far as 6,038 increases considerably. That would imply a momentary directional bias favouring strong long setups, with stops needing to remain tight—to somewhere under 5,940—to contain extending drawdowns.

At the same time, those considering contrarian setups would be remiss to ignore the positioning between 5,960 and 5,977. It’s a region that has triggered reversals previously, partly because of the way daily reversion metrics tend to react to overshoots here. This could mean that fading into strength with small exposure becomes viable, provided that stops are placed efficiently—levels just above 5,980 may be suitable in this regard.

If downside pressure returns and we slip under 5,904 decisively, then 5,870 emerges as the next probable reaction zone. We should expect liquidity to concentrate there, as it’s historically been a meaningful retracement base. Retesting this portends further weakness, so the trade becomes following momentum south, rather than anticipating blind bounces. We would advise that sell-side exposure in this case be defended with stops refined towards 5,920, which sits near recent volume anomalies.

Risk management here is non-negotiable. Exposures should remain lean. The broader objective isn’t to chase every move but to identify sessions where volume and price align with directional convictions. Alerts already placed around 5,960 and 5,904 are poised to prompt faster execution when entry patterns align. Until then, patience combined with clarity on trade structure will serve better than early positioning.

Volume confirmation at key zones remains an essential filter. Without it, entry quality suffers and slippage risk increases sharply. Coordination between market profile structure and short-term order flow is helping affirm these pivots, which we will continue to watch for validation throughout the coming sessions.

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