ES will probably get to 5488 or so, IMO

Key levels and market trends for S&P 500 e-mini futures (ES)

📈 Current market trend for S&P 500 e-mini futures:

• The S&P 500 e-mini futures (ES) have been in a strong upward trend within a well-defined ascending channel since October.
• The chart shows consistent higher highs and higher lows, indicating a bullish market sentiment.

📉 Recent pullback of E-mini S&P 500:

• The market recently experienced a pullback, retreating from a high of 5721.25 to the current level of 5556.75.
• This pullback brings the ES to an interesting support zone around the 5500 level.

🔍 Key levels to watch for S&P 500 Futures:

• 5500 round number: Psychological level that often acts as a significant support or resistance.
• 5488 level: This is a critical support level identified from the chart, which traders should watch closely for potential buying opportunities.

📊 Technical indicators:

• The ascending channel provides a clear framework for price movement, with the lower boundary acting as support.
• A break below 5500 could test the lower boundary of the channel around 5488, a key support level.

🧐 What to watch:

• Support test for mini S&P 500: If the price holds above 5500 and 5488, it could indicate strong buying interest and a potential continuation of the upward trend.
• Stronger confirmation: For traders and investors seeking to understand if this will be a dip or a breakdown of the channel and bear flag, watch for two consecutive daily closes below the channel. This would signal that bears may have seized control.
• Bear flag activation: If the bear flag is activated, be patient and wait for a retracement back to retest the lower band of the channel before entering a short position. This retest could provide a better entry point for those interested in shorting.

💡 Trading strategy for trading or dip buying for ES:

• Long positions: Consider entering long positions around 5488-5500, with a tight stop loss below the channel’s lower boundary. BUT IT IS BETTER TO DO SO AFTER WAITING FOR 2 CONSECUTIVE DAILY CLOSES, if the 5488 key price level is reached. OR TO SCALE INTO THE POSITION WITH A FAIRLY TIGHT STOP.
• Short positions: If the price breaks below 5488, consider short positions targeting the next support levels, with appropriate risk management. Wait for a retest of the lower band of the channel to confirm the bear flag before entering.

📅 Market sentiment:

• Stay updated with market news and economic data releases, as these can influence market sentiment and price movements.

📉 Risk management:

• Always use stop losses to protect your capital.
• Diversify your portfolio to manage risk effectively.

By monitoring these key levels and market trends, traders and investors can make informed decisions and capitalize on potential trading opportunities in the S&P 500 e-mini futures market. Visit www.ForexLive.com for additional views. 🚀📈

This article was written by Itai Levitan at www.forexlive.com.