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Is the E-Mini S&P on the Brink of Bearish Territory?

The turbulent E-mini S&P 500 has experienced a wide trading range since the early February sell off. Spurred on fears of inflation, trade war, tech stock slumps and the potential for the Fed to introduce an additional rate hike, the ES has been on a wild and bumpy ride.

Last Friday, March 23rd, the futures index touched a critical level & has been flirting with it for the past three trading sessions. Should the ES breach its 200 day moving average of 2590, it will officially move into what many consider bearish territory. Warning bells will likely be triggered and a selloff could follow suit.

But, where does the ES go from there?

From its most recent low of 1770 in February 2016 to its all-time high of 2883 lies a 38.2% Fibonacci retracement. Coincidently, the 38.2% retracement aligns with a large volume pock that could act as a strong support level during a correctional period.

E-Mini S&P Chart

The above chart, created using the award-winning NinjaTrader platform, showcases the daily E-mini S&P over the last two years. The long term Fibonacci Retracement outlines a number of key support and resistance levels overtime. Additionally, a 200 period SMA is included to provide a general scope of trend direction. The Volume Zones indicator offers historical insight on where the buyers and sellers are making their moves. Lastly, a Range indicator puts a numerical value on the high and low of each bar, or in this case, each trading session.

These indicators and drawing tools just scratch the surface on the nearly 100 FREE indicators available in the NinjaTrader platform. Get started with a free download and advanced charting today!