The US stock market continues to vacillate between bull and bear moves…
This comes as traders are going back and forth between thoughts of economic growth and recession.
But from our technical analysis standpoint, the major index of the US market, the S&P 500 Index, is in the sell zone and providing potential opportunities for bearish trade ideas.
So, let’s dive in and take a further look at the market for the S&P 500 Index futures contract (ES)…
The S&P 500 Index (ES) Trade Idea
Here’s how the chart is setting up for the S&P 500 Index futures contract (ES)…
And here’s how we see a trade potentially shaping up on the bear side…
The ES daily time frame is in a down trend, with the market making lower lows and lower highs.
There is a down Fibonacci with an extension price point 3,228.75, about 2,237 ticks below the market.
As long as the daily time frame stays below the downtrend line, it will be a good idea
to turn to the one hour time frame and look 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…
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 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. Countless everyday Americans are earning anywhere from an extra few hundred bucks a week…
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The post Trading the Big US Stock Index in the Sell Zone appeared first on Josh Daily Direction.
