At the end of September, the S&P 500 (ES) futures market closed firmly below its monthly up trending support level.
What that tells us is that the ES is still stuck in a short term down trend and should continue to push bearish.
At this point, there is a daily down Fibonacci level at 3,199 as well as a monthly down Fibonacci level at 3,026.
These extension levels each represent a potential downside move of over 2,000 ticks, but finding the proper entry is going to be important…
Waiting for an Entry
Here’s how the daily chart is shaping up for the ES market…
The ES daily time frame is in a down channel.
The market hit the top of the channel and is now pushing bearish making lower lows and lower highs towards the bottom of the channel.
There is a down Fibonacci extension price point 3,199.00, about -2,211 ticks below the market.
The market is currently moving from a low price towards a high price (ideally near the down trend line).
Therefore, it will be a good idea to wait for the market to finish pulling back and give a high price before turning to the smaller time frames and looking for selling ideas.
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…
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Keep on trading,
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