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…
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
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Keep on trading,
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