S&P 500 Futures Analysis Today

TradeCompass: S&P 500 Futures Analysis – 14 January 2025

Financial Instrument: S&P 500 E-mini Futures (ES Futures)

Price at the Time of Analysis: Approximately 5900

Key Levels and Trade Scenarios for S&P 500 Futures Today

Bullish Above: 5912.5

• Why Bullish Above:If the price of S&P 500 futures rises above 5912.5, it signals strength beyond the tight trading range and moves price above a key level near the January 10th first upper standard deviation at 5906.5. A break above this range would attract fresh buyers, offering opportunities for long positions.

• Bullish Profit Targets:

1. 5917.25 – Just below the next resistance level, aligning with momentum from institutional activity.
2. 5925 – A psychological round number where profit-taking is expected.
3. 5932.75 – A level near previous highs, offering an extended target for bullish positions.

Bearish Below: 5905 (only after touching 5906.5)

• Why Bearish Below:Short positions should only be considered once the price reaches 5906.5 (January 10th first upper standard deviation) and then retreats below 5905. This ensures key price magnets have worked themselves out and confirms bearish sentiment.

• Bearish Profit Targets:

1. 5895 – Just above January 10th’s VAH, providing an initial target for shorts.
2. 5883.5 – Near January 10th’s VWAP, a critical level for partial profit-taking.
3. 5865 – Just above the Point of Control (POC) from January 10th, a zone of significant volume.
4. 5856.25 – Above January 10th’s VAL and yesterday’s VAH (January 13th), marking an important confluence of support.
5. 5842.75 – Yesterday’s VWAP, a deeper runner target for those holding onto bearish positions.

Educational Insights for S&P 500 Futures Traders

Trading Around Key Levels

Trading within a tight range, such as today’s 7.5-point band, can offer excellent entry opportunities for traders who remain disciplined and wait for the price to touch and react to critical thresholds. Key levels like 5906.5 act as price magnets, attracting liquidity and often serving as turning points in the market.

• Bullish Tip: Wait for a sustained break above 5912.5 to confirm buyer strength before entering long positions.
• Bearish Tip: Only consider shorts below 5905, ensuring that price has touched 5906.5 first to validate the setup.

VWAP and Value Area in S&P 500 Futures Analysis Today

The Volume-Weighted Average Price (VWAP) and Value Area High/Low (VAH/VAL) are indispensable tools for identifying support and resistance zones:

• VWAP Use:
  • Reflects the average price based on volume, helping identify institutional activity.
  • Yesterday’s VWAP at 5842.75 serves as a key runner target for bearish scenarios.
• Value Area Analysis:
  • The VAH and VAL of January 10th provide critical levels for both bullish and bearish trade plans, ensuring precision in profit-taking.

Disclaimer

This S&P 500 futures analysis is for educational purposes only and does not constitute financial advice. Trading in ES futures involves significant risks and may not suit all investors. Always manage your risk and trade responsibly.

Visit ForexLive.com for more insights and updates on S&P 500 futures analysis.

This S&P 500 futures analysis provides a precise “compass” for today’s market. Use the outlined bullish and bearish thresholds to navigate trading opportunities, considering partial profit-taking strategies to lock in gains and balance risk.

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