The S&P 500 (ES) futures market had a big win yesterday, gaining almost 2% to fend off the bears at the June lows.
However, the daily time frame remains in a down channel, and we are still looking for selling ideas.
If we see the current bounce continue towards the top of the channel, that’s where we’ll be looking to sell the market again.
Now, let’s take a closer look at the hourly time frame and get the lay of the land…
More Downside Ahead
Here’s how we see the S&P 500 Index futures contract developing…
The ES one hour time frame is in a down trend, making lower lows and lower highs.
The market has a down Fibonacci extension below the market price point 3,634.25, about -317 ticks below the market.
Entry: Counter trend line break bearish near the down trend line.
Stop: In the buy zone above the entry.
Limit: 3,634.25
Once or if the market gives the entry. As long as the market stays in the sell zone. It will be a good idea to turn to the five minute time frame and to look for Tunnel Trader short / Destination Trader short / Chandelier Trader short ideas towards the price target.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
But my colleague and stock trading pro Anthony Speciale has made a seismic market discovery that is delivering results like you’ve never seen before.
If you’re interested, check out the important P.S. below…
And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more!
Keep on trading,
P.S. Were you able to join my colleague and expert trader Anthony Speciale for the “Apex Fortunes Summit” earlier this week?
If not, I highly suggest watching the on-demand replay session right here.
The post Time to Sell the Rip in ES? appeared first on Josh Daily Direction.
