SPX 500 Market Update

A new week lies ahead and we saw a strong SPX 500 market today. So, with the new week we shold consider a quick look at the plain weekly bars chart to check the flow of the bigger story. As we can see the market behaves in a balanced way on this timeframe. The previous week found resistance at the bracket high and ended the week with a loss to settle 2,24% lower alongside with a supportive test of the balance area low. Actually we opened inside of this balance area with the potential scenario to move all the way back to our lovely bracket high.

Moving forward to the daily perspective, we can see Thursday's nice buying tail candle followed by an inside day and today's break above the lower balance area. The market moved all the way back to test the upper bracket low after it broke the high from Thursday. (Please note that this is a SPX 500 Cash chart and not the ESM5 futures contract)

Today's nice trade location was the nice pullback after the market broke Thursday's high (ETH):

We'll see how the overnight session will develop the current bullish situation. Anyway, stay open minded and happy!

Please visit our trading community to learn a more indepth analysis process with various tools such as the VWAP or Footprint chart.

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!