Is the S&P Setting Up for a Bull or Bear Market?

The US stock market continues to gyrate day by day and week by week. 

And with the Federal Reserve Open Market Committee (FOMC) continuing to pursue actions that will reverse easier money over the coming months, look for more ups and downs in the market.

But this doesn’t mean that the benchmark S&P 500 Index and its futures contract (ES) is completely set for either a given bull or bear market move. 

Lots of factors can and will impact the direction of the index, which means that there are plenty of pending trading opportunities for both bull and bear market moves.

So, today, let’s take a look at potentially capitalizing on either a bull or bear market run in the S&P 500 futures contract (ES) as this week shapes up…

 The S&P 500 (ES) Trade Setup

Here’s how the chart shows the potential gain from either buying or selling the S&P 500 Index futures contract (ES) may be getting underway…

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

And here’s how I see the potential bull or bear trade setting up for the S&P 500 Index…

The S&P 500 Index futures contract (ES) is in a channel. The market is at the bottom of the channel. 

If support holds, we can look for long ideas towards the top of the channel

price point 4,353.25, about +2,295 ticks above the market.

Or if support fails and the market closes below the bottom of the channel, we will need to bring in a down Fibonacci to look for the next bearish extension. 

At this time, it will be a good idea to stay out of the market until the direction is clear.

The Bottom Line


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.

This also extends to alternative assets, including futures contracts for digital currencies. 

I discussed how the current volatility in these digital asset contracts could set up interesting trading opportunities in my latest presentation, which I encourage you to watch right here.

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. I have been teaching more and more traders how to make their own trading accounts work so well that they can effectively become a side job with plenty of regular earning opportunities, particularly in digital currencies like BTC.
To learn how this might work for you, I have a special on-demand presentation showing how this works utilizing my War Room service, which you can access here for free.

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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