E-Mini S&P 500 Futures Market Update

The E-Mini S&P 500 September Futures contract opened inside of the previous regular trading hours (RTH) range and value today. The market rejected the POC, broke the previous low and got selling imbalanced for the rest of the day.

To better understand this selling behavior let's take a look at the higher time frames. With looking at the Yearly VWAP with daily bars, we can see that the previous session found resistance at Yearly developing value high (DVAH) for a down move to the developing VWAP. Also, with a closer look, we can observe the confluent levels with two marked balance areas:

A potential scenario could be a destination move to the Yearly developing value low.

Also, to mention is the Quarterly VWAP, with resistance at the DVAH and the down move to the previous Quarterly value area low close level. The globex market has been opened directly at the previous VWAP close level. Here is a potential destination move to the Quarterly developing value low possible as well.

Moving forward to the 240 minutes volume profile chart, we can identify the resistance level with the low volume areas:

Take a look at the monthly volume profiles and the areas we marked on this figure:

An intra-day short position at the open or as soon as the market broke below the previous RTH-low (in next 30 min TPO period) with a stop inside of the previous value made somewhat sense.

The market seems to be balanced with possible support at the mentioned levels (Yearly DVWAP, Quarterly VAL close level, Low Volume Areas). However, a destination move to the other side of the developing value (Quarterly and Yearly) is possible as well. Stay open minded for several potential scenarios.

All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.

SPX 500 Top Down Perspective

Next to the 10 Year Treasury Note contract the E-mini S&P 500 contract [ES] is the most liquid futures contract that currently exists. With that, we should take a quick look into this market with our top down analysis process. In this process the first piece of information is the larger picture Monthly bar chart to understand the macro behavior of the selected market.

Looking at this monthly bar chart, we can see a heavy bullish imbalanced market. Obvious is the outside bar that could be a first sign of change in market context. However, the previous month was an inside bar and the current month seems to break higher. Currently the market is testing the marked resistance level. We'll see what will happen here.

The weekly chart is heading towards to the drawn bracket area high.

The daily perspective showing this balanced behavior in a more clear and greater detail. Currently the market is one time framing higher in this balance zone and moving forward to the bracket high.

With looking at the weekly EMAs, we can see support from the short-term trend 5EMA as well as 10EMA. The 20EMA served various times also as a great support:

The daily short-term as well as long-term bullish EMA trend is intact with current support from the 5EMA:

It will be interesting to see where this market will break out. The market could find resistance at the daily/weekly bracket high to return to lower areas again. However, a stop-run scenario to higher areas is possible as well. You can find more indepth analysis with VWAPs and TPOs on our trading community. This top down perspective was only a quick heads-up analysis.

Stay happy!

All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.

E-Mini S&P 500 Market Analysis

All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.

This is a quick preview of a market analysis form our trading community. With an elite membership you can read some more market insights from the community and download the analysis chart templates as well as tools we using in our daily trading.

With that said, let's take a look on some HTF (Higher Time Frame) charts. On the weekly bars chart we can identify a strong close above the 50 EMA some weeks ago and since then we are one-time-framing higher. Last month's high got taken out from the current month as well. The short term trend with 5, 10 and 20 EMA is intact as well as the long term trend with the 50, 100 and 200 EMA.

This week found support at the previous week's VAL close level. The market moved back into value, tested the developing value low and pushed to the other side of extreme (DVAH). Currently we are balance around in the upper developing value with support from the weekly VWAP.

For more insights visit the Sunday Night Homework thread or the Top Down Technical Analysis category. As mentioned you have only access to this posts with an elite membership or premium membership.

To better understand the various trading terms like VWAP, VAL or HTF visit our trading glossary of trading terms.

Enjoy your success!

S&P 500 Cash Market Analysis

All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.

Let's take a look at the bigger pictures of the S&P 500 Cash Index with some various tools we use at The Private Banker to better understand the overall market story.

We begin with a plain monthly chart:

What can we observe on this monthly chart? Firstly last month's low got taken out from this month and we see a somewhat of a balance bracket since the market found support. So the one time framing higher on the monthly chart has a end?

Now we zoom to the weekly chart:

We can cleary spot a reaction at the mean of this finer placed price channel. The current week took out last week's high and ended the one time framing lower that occured since several weeks.

On the daily chart we are actually one time framing higher. The market opened somewhat far away form the 5 EMA so, a rotation back to this week's average should be high. Also we see resistance at the longer term directional filter 50 EMA.

With a look on this year's VWAP we can identify a reaction at the developing value low which is confluent with the weekly price channel mean. The market moved stright to the other side of value. The likelihood of a rotational behavior in this year's developing value should be high.

On the weekly VWAP the market trading above last weeks value area. Also we see a good imbalanced market above the developing value but today we got back into value again. Test of DVAL could be probable in this case.

Anyway, this was a quick market analysis recap for the S&P 500 Cash Index. For a more indepth understanding we recommend to join our Trading Community with a seperated premium trading education section. Also, you can take look into our Trading Glossary to better understand the terms we use in our tweets and reports.

We hope you have a great week in the markets!