Technical Analysis

E-mini S&P 500 futures finally break out, further upside likely

  • ES is breaking above the inverted head and shoulder neckline on the daily chart.
  • Setting targets for the next few months.
  • How we can trade this at OneUp Trader.


We have been tracking the inverted head and shoulders for a while in ES. Finally, it looks like price is breaking above the neckline, which is a great sign for the bulls. Please look at the previous article’s charts for reference if you have not been keeping up to date with the analysis.

Below is a zoomed-in version of the daily chart breaking out. It has not been 100% confirmed just yet, but it appears that price is likely to continue moving upward.

ES Daily Chart

Now let us take a look at Target if we see this momentum continue, and then I want to go into how we can actually benefit from this in day trading.

In the chart below, notice how there is very little liquidity moving up above $4,200. We are entering low-volume nodes all the way up toward the all-time highs. Price generally moves quickly through low-volume nodes because there is little liquidity there. For the entire time between July of last year and now, there has been an accumualtion phase. It is important to understand that this is likely because there are very large market participants that have been accumulating, keeping the price up.

From here, there is very little evidence for much of a bearish case. Targets moving upward are set at $4,600 and then $4,800.

How to trade this?

This is relatively simple to trade. All we need to do is open positions at the start of the day and close them at the end of the day. If one contract is too much risk, then trade micros. This is a simple set up, and as long as prices remain above $4,062, then I am bullish.

Traders can also completely ignore any short signals they get or put on an hourly chart and buy any dips into a moving average. There will still be red days, of course, but over the long run, if prices rally up toward $4,600, then the trader will be handsomely in profit.

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