Forecast for Tuesday

Tuesday September 25 at. 00.52

Previous prediction proved to be very accurate, even though the probability was only 65%. The Polish futures contracts WF20 followed S&P E-mini. On Monday VIX went up slightly (1.4%). However, VXX was down 1.44%. Dow Transportation increased more than 1%. Although – it would seem that holding long position can be uncomfortable, the support level at 1,445 have not been crossed.

According to my calculations, on Tuesday the futures contracts in America will be going down for certain part of the session. Decline may be bigger than that of Monday. However, prices may return above the level of 1450 to continue the side way trend, if that does not happen the S&P 500 futures contract will end a day in the red.

Strategy for Tuesday: S&P E-mini will be going downwards for some time during the day.

The first option – in the morning the S&P500 futures are trending upwards – wait for a highest possible level of WF20 and then shorten the market.

The second option – the S&P500 futures are going down in the morning, sell the market short or shorten it after opening of the cash market.

Probability of my forecast – 75%