The S&P 500 Index is considered the definitive index for the US stock market.
This is why we keep a keen eye on the index and its futures contract (ES).
And right now, we are seeing the potential for a bullish performance for this market leading index.
So, let’s take a look at capitalizing on what we see as a potential trade developing in the ES and review what’s happening inside the charts…
The S&P 500 (ES) Trade Setup
Here’s how the monthly chart shows the potential buy trade in the S&P 500 Index futures contract (ES) is setting up…
The S&P 500 index Index futures Contract (ES) monthly time frame is in an up trend, making higher highs and higher lows.
The market is at a low price hitting a known level of U-turn and just hit a down Fibonacci extension.
All signs are showing a bullish push should take place. If the market closes in the sell zone, then I would expect the sellers to keep pushing the market down.
However, the monthly time frame has not closed yet, and with the monthly down Fibonacci extension hit I am expecting a bullish push back above the known level of U-turn before the monthly candlestick closes.
The Bottom Line
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