The stock market continues to show signs of resilience and optimism.
On any given day, the leading indexes will experience buying sending traders into profitable trades, including for the core US benchmark S&P 500 Index.
In fact, even this morning, the S&P showed some nice gains for a period of time both in the cash market as well as in the futures contract market (ES).
The key for traders is to be able to take a step back from just an intraday or daily chart and get a perspective for the potential longer-term trading opportunities.
And today, we’re going to do just that…
Looking for the Next Direction
Here’s the S&P 500 futures contract (ES) monthly chart and the set up discussion…
The S&P 500 futures contract (ES) monthly time frame is in an up trend.
The market is making higher highs and higher lows. The market is at a low price hitting a known level of U-turn.
The market has an up Fibonacci extension at price point 6,422.50, about +9,741 ticks above the market.
It will be a good idea to turn to the daily time frame and to look for low prices in the buy
The Bottom Line
While the stock market indexes continue to gyrate day by day, by taking a step back and looking at longer-term charts, there may be new entry levels setting up for the S&P 500 Index at the right prices.
Luckily, you can now leverage the market knowledge I’ve gained over all my years in the market to your advantage.
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.
In addition, alternative assets are also providing trading opportunities such as in crude oil…
Please take a look at the work of my colleague and expert oil analyst Anthony Speciale provided below on this important market.
And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!
Keep on trading,
P.S. The crude oil market has been providing plenty of potential trading opportunities for traders to cash in on ongoing demand for energy and limited supplies. My colleague and expert oil analyst Anthony Speciale has developed a strategy for creating a pipeline of potential profits. And he’s eager to share how it’s done…