S&P 500 futures
Technical Analysis

S&P 500 (ES) Futures mixed ahead of GDP growth rate

  • Stay informed with our technical analysis of the S&P 500 futures.
  • A potential formation of an evening star pattern and the struggle to break through resistance at $4033.25.
  • Follow our analysis for insights on the market before the FED interest rate decision on January 31st.

Quick recap

In our analysis from last week, we looked at the bearish divergence on the hourly chart and that it was likely a better option to wait for a pullback if a trader was interested in going long. After that, we saw ES pull back 100 points giving a potential entry signal for the Bulls.

Now with GDP and the FED interest rate decision out in the next few days, let’s take a look at where ES stands with regard to technical analysis.

Technical Analysis

Today the daily chart shows signs of a potential evening star pattern formation, but there is still plenty of time before we get today’s close. Recent price action in ES point toward confusion in the market as price hovers around the downward trend line we have analyzed here.

The resistance zone at $4033.25 is proving to be a wall bulls are not able to break through. As long as the price remains below this level, there is still the chance for ES to drop and continue with the bear market trend. This all comes down to Powell’s comments on January 31st.

ES daily chart showing evening star pattern
ES Daily Chart

A True Story

S&P 500 trader is that of Paul Tudor Jones.

Jones is a well-known hedge fund manager who founded Tudor Investment Corporation in 1980. In 1987, Jones correctly predicted the stock market crash that occurred on Black Monday, October 19th. He had been closely monitoring the market and believed that it was overvalued due to the widespread use of leveraged buyouts and portfolio insurance.

On the morning of Black Monday, Jones began shorting the market and ultimately made a fortune when the market crashed. He reportedly made over $100 million in profits that day. Jones’ success on Black Monday solidified his reputation as a skilled trader and helped establish Tudor Investment Corporation as a leading hedge fund. Today, Jones continues to manage Tudor Investment Corporation and is considered one of the most successful traders in history.