The S&P 500 Index futures contract (ES) is the big, definitive index that guides trades far and wide.
It has been on the ascent recently, especially over the past few days with the better than expected inflation data.
But it is still in the sell zone, which we want and need to investigate.
So, let’s take a look at the ES and see how it is shaping up…
S&P 500 Index (ES) in the Sell Zone
Here’s how the S&P 500 Index (ES) chart is showing the potential path as it continues to trade within its longer term down trend…
S&P 500 Index Futures Futures Contract (ES) Price and Technical Analysis – Source: TradingView
The S&P 500 Index futures contract (ES) daily time frame is in a long term down trend.
The market has been moving from a low price towards a future high price and just hit an up Fibonacci extension price point 4,139.00.
It is expected the market should form a high price and have a bearish reaction.
If the market pushes bearish towards the short term up trend line and if support fails, it is expected the market will continue to push bearish towards the daily long term Fibonacci price point 3,228.75.
If the support of the short term up trend line holds, it is expected the market to push back bullish towards the daily down trend line.
It will be a good idea to turn to the one hour time frame and to look for short ideas towards the short term daily up trend line.
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 with inflation on a fast-track, you need to know how to amplify your gains. To see how I do it, check out the link in the P.S. below…
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
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Keep on trading,
P.S. Trading can be a lot more than just trying to cash in on ups and downs in the markets.
It can also become a side job that provides additional income…