S&P 500 Futures Analysis Today

S&P 500 E-mini Futures Analysis: Key Price Levels for January 9th, 2025

This article provides a focused analysis of the S&P 500 E-mini Futures (ES), highlighting key levels and zones to help traders navigate today’s market. The guidance includes bullish and bearish thresholds, profit-taking targets, and an orientation on the significance of these levels based on recent market behavior.

Current Price at ES at the of this analysis: 5943.5

The S&P 500 E-mini Futures are trading at 5943.5 at the time of this analysis, positioning the price near pivotal levels that will determine market direction. The guidance below outlines the thresholds where bullish or bearish scenarios gain traction, along with associated profit-taking levels. Currently, 5953 is probably a price magnet, very close to yesterday’s value area high.

Bullish Above 5968

Why Bullish Above 5968?

If the price moves above 5968, it signals bullish momentum for the following reasons:

• The price would rise above the VWAP levels of five of the last seven trading days.
• It would be above yesterday’s Value Area High (VAH).
• It would clear the Point of Control (POC) from two trading days ago.

Profit-Taking Levels for Long Positions:

If price sustains bullish momentum above 5968, traders may consider the following levels for partial or full profit-taking:

1. 5985.50: Just below the VWAP from January 7th.
2. 5994.25: Just under the VAH of yesterday and January 3rd.
3. 6011: The Value Area Low (VAL) from January 6th.

Bearish Below 5928

Why Bearish Below 5928?

If the price drops below 5928, it signals bearish momentum due to the following factors:

• The price would break below the Value Area Low (VAL) of the last three trading days.
• It would also fall below the VWAP from January 2nd, a key support level.

Profit-Taking Levels for Short Positions:

If price sustains bearish momentum below 5928, traders may consider these levels for partial or full profit-taking:

1. 5921.50: A nearby level for initial profit-taking.
2. 5901.75: Just above the psychological 5900 round number.
3. 5879: Just above the VAL from January 2nd.

Key Terms and Concepts for Traders

VWAP (Volume Weighted Average Price):

VWAP is a critical level for intraday and swing traders. It provides a volume-weighted average of price, often acting as dynamic support or resistance. For more details on VWAP and how it can guide trading strategies, check out this educational resource.

Value Area, VAH, VAL, and Point of Control (POC):

These terms stem from Market Profile analysis, identifying the price zones where most trading activity occurred.

• Value Area (VA): Represents the price range where 70% of trading occurred.
• VAH (Value Area High): The upper limit of the Value Area.
• VAL (Value Area Low): The lower limit of the Value Area.
• POC (Point of Control): The price with the highest traded volume.

To learn more about these concepts, visit this guide.

Conclusion

Today’s S&P 500 E-mini Futures trading map highlights key levels for both bullish and bearish scenarios:

• Above 5968: Bulls gain control, with targets at 5985.50, 5994.25, and 6011.
• Below 5928: Bears take charge, targeting 5921.50, 5901.75, and 5879.

These levels provide meaningful junctions for traders to evaluate price action and consider potential reward-to-risk trades based on their individual strategies. As always, trade responsibly and consider key levels in your decision-making process.

Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always trade at your own risk.Visit ForexLive.com for additional views.

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