Technical Analysis

S&P 500 (ES) Hits All-Time Highs, Technical Analysis


The S&P 500 Futures (ES) has rebounded from its recent 7% pullback and broke above the all-time high on May 15th. Technicals look bullish and follow a trend. We can begin grinding down to shorter time frames, avoid looking for shorts, and focus solely on looking for longs on our short-term strategies.

Why Daily Chart Matters

The daily chart is important to watch even when day trading because it gives us an idea of longer term picture in the market. If we avoid doing technical analysis on the daily chart then we are reducing our edge on our short term systems. The reason is because traders believe their system is flawless even though their equity curve proves otherwise. They don’t want to accept the fact that their system might not perform well in certain market conditions.

If we look at the daily chart and notice that the trend is clearly up and that our technicals point to the upside, then we know big buyers, institutions, and investors in general are looking for longs, so most of the dips will get bid.

Then why would we want to short into this buying pressure?

Daily Chart

The daily is bullish. The awesome oscillator is green and making higher highs. The clearance of the recent all-time high is important to note as that would be the level where support would come from.

S&P 500 (ES) futures on the daily chart

Make sure to watch the support zone at the current price. We must see the market remain above this level for the bull case to be strong.

Hourly Chart

On the hourly chart, a simple way to buy the dips would be to wait for price to retrace to the 50 SMA.

S&P 500 ES hourly chart


Risk management is a critical aspect of trading. A solid trading strategy should include a well-defined system with clear rules, emotional control, and proper money management. Experienced traders understand the importance of managing both profits and losses, while beginners should prioritize avoiding severe losses.