S&P 500 Index on the Verge of Another Drop?

We’ve been looking for a potential bullish turnaround in the benchmark S&P 500 (ES) futures market lately…

But it is still trading within its longer term bearish trend.

The market just got rejected at the long term down trend line and has broken the short term counter trend line bearish.

Now, we’re just looking for the market to fall back fully into the sell zone…

Buy Zone or Sell Zone?

Here’s how we see the major benchmark stock index setting up with its bearish conditions…

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

The ES daily time frame is in a large bearish trend. The market is making lower lows and lower highs.

The market hit the down trend line and pushed bearish. The market is currently breaking the short term up trend line.

If the market is able to close below the short term uptrend line, it will be a good idea to turn to the one hour time frame and to look for selling ideas in the sell 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 my colleague and stock trading pro Ross Givens has come up with some incredible strategies of his own that continue to impress.

If you’re interested, check out the important 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.

And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more!

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Keep on trading,

P.S. My colleague and expert stock trader Ross Givens is continuing to work on many of his strategies and his overall research. 

And in particular, he has some great “stealth” trading ideas that the market is missing… but you don’t have to.

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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