The S&P 500 Index is the benchmark Index for countless investment funds and is the bogey that fund managers have to beat quarter by quarter and year by year.
So, what is happening for this important index so far this year? And what does our research show for the direction and trading opportunities for this index?
Of course, we focus on the futures contract for the S&P 500 Index (ES), which has turned in some trading gains throughout the year, despite the overall negative return.
Take the recent trading period of May 19 through today. The S&P 500 returned 5.22% for a healthy cash return during this brief time period. Or if you take a look at March 8 through March 29, the S&P 500 had a cash return of 11.14%… another nice positive performance.
This shows that the index isn’t the loser that some might assume for the year. And more importantly, that the S&P 500 and its futures contract (ES) may well have some nice potential trades that could present themselves this week.
So, today, let’s look at the S&P 500 Index futures contract (ES) and the potential trade that might be shaping up.
The S&P 500 Index (ES) Trade Setup
Here’s how the chart is showing the potential gain from the leading benchmark index as measured and traded via its futures contract (ES)…
And here’s how I see the potential trade setting up…
The S&P 500 Index futures contract (ES) one hour time frame is in an up trend.
The market is making higher highs and higher lows.
The market has an up Fibonacci with an extension price point 4,301.75, about +196.25 ticks above the market.
Entry: Counter trend line break bullish in the buy zone.
As long as the market stays above the up trend line, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader long / Destination Trader long ideas.
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.
And these ideas also will include alternative assets such as digital currency trades via futures contracts for the likes of BTC and ETH.
Below, look for a special presentation invite discussing these opportunities in the making right now.
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. While US stocks are showing potential gain opportunities, there are also alternative assets that I also see providing trading opportunities.
Digital currencies are setting up profitable trades that could provide an alternative income source for traders armed with the right information. And this could even set up a nice side job (gig) for you in the process.
I continue to provide this information in my War Room research service, which you can learn more about here.