Benchmark Index Still In a Long-Term Downtrend?

Stock markets continue to move between their sell and buy zones, which is creating opportunities for traders. 

But the mega benchmark S&P 500 Index and its futures contract (ES) is currently at a key level and waiting to either break down into the sell zone or break out into the buy zone.

There has been some solid, positive movement lately, but we’re still seeing more sells than buys in the works.

So, let’s check in on our current analysis on the ES contract and see what may come next…

S&P 500 Index (ES) at a Key Level

Here’s how the S&P 500 Index (ES) chart is showing the potential path forward for a further bearish trade or some new bullish potential…

S&P 500 Futures Contract (ES) Price and Technical Analysis – Source: TradingView

The ES daily time frame is in a down trend. The market is moving from a low price towards a future high price.

The market is hitting the daily down trend line. If resistance holds, it is expected the market will push bearish, creating a bearish trend off the one hour time frame.

If resistance fails, it is expected the market will continue with the bullish trend off the one hour time frame.

It will be a good idea to wait for confirmation of direction by waiting for the market to either A) break the down trend line and enter into the buy zone or B) break below the short term up trend line and enter into the sell zone.

Once direction is confirmed, it will be a good idea to turn to the one hour time frame and look for trade ideas in the proper zone.

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,

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To learn more, click here!

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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