With the recent launch of the exciting Micro E-mini futures from the CME Group, investors are eager to begin charting and trading.
Since these Micro contracts are new to the exchange, their historical chart data starts plotting on the launch date of May 6, 2019. However, since Micro E-minis mimic their larger sized counterparts, charting historical support & resistance and other levels can be accomplished with ease!
E-mini vs Micro E-mini Charts
In the 5-minute chart below, Micro E-mini S&P futures (MES) are seen in the upper panel and full-sized E-mini S&P futures (ES) are in the lower panel. As you can see, the price is the same for both contracts, and both charts look nearly identical.
However, when changing the time interval to a 60-minute chart, it quickly becomes apparent there is no historical data for MES prior to May 6, 2019.
At this point, it is necessary to use ES historical data to find important levels such as support & resistance and any other historically relevant price levels.
For example, pulling up a daily ES chart from February 2018 to present, we observe the price level of 2827.25 to be a potential support level due to the fact that it has acted as resistance several times in the past.
Classic technical analysis tells us that once resistance is broken and closed above, it tends to later act as support. Therefore, a blue horizontal line is drawn here to indicate an important inflection level.
By plotting the same blue horizontal support line on an MES chart, we can now reference this important price level of 2827.25 without having the historical price bars.
Using this principle of referencing full-sized E-mini data to extrapolate information for Micro E-mini charts, the technical analysis possibilities are endless! Although Micro E-mini futures are new to the futures market, they are derivatives of much older futures instruments which are derivatives of long-standing equity indexes!
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