Technical Analysis

S&P 500 Futures (ES) Struggle Near All-Time Highs

All Time High Resistance

ES bulls attempted to break above the all-time high but have failed with a nasty-looking daily candle for the 23rd. This could be an opportunity to short as there is also some small bearish resistance on the RSI.

Long Trade Opportunities

  1. Breakout Above Resistance:
  • Entry: Buy above $5368. This is the false break high from today. Long trades could be considered above this level as price looks for new target above during price discovery.
  • Confirmation: Look for a strong daily close above $5368 with increased volume.
  • Target: $5500 psychological level.
  • Stop Loss: Below the breakout point, around $5300.

Short Trade Opportunities

  1. Rejection at Resistance:
  • Entry: Sell around these levels ($5331) if the price fails to break through and shows bearish reversal patterns.
  • Confirmation: Look for bearish candlestick patterns (e.g., shooting star, bearish engulfing) at resistance.
  • Target: short scalps.
  • Stop Loss: Above the resistance zone, around $5368.
  1. Breakdown Below Support:
  • Entry: Sell below $5300 if the price breaks the support level with strong bearish momentum and increased volume.
  • Target: Initial target at $5250, followed by $5200 and possible $5100.
  • Stop Loss: Above $5368.

News Events Coming Up To Watch

Consumer Confidence Index (May 28, 2024): This indicator reflects consumers’ economic optimism and can significantly impact market sentiment.

ADP Employment Change (May 29, 2024): This report provides insights into private sector employment trends, often viewed as a precursor to the official employment report.

GDP Q1 Revision (May 30, 2024): The second estimate of Q1 GDP growth, which can influence market expectations about the economy’s direction.

ISM Manufacturing PMI (May 31, 2024): This index measures manufacturing sector health, offering a comprehensive overview of economic activity.