What are Key R&S levels in the S&P 500 Market?
It doesn’t matter if you are a day trader, a long hold trader, or a scalper. In this video we go over a few key levels to pay attention to every year for ES 500 trading. These levels, when marked on your chart, will give you an edge in any time frame you are trading. This is because they often act as large barriers of R&S trading throughout the year. Having them marked on your chart will allow you to prepare for the market reaching them, and the next big move in the market.
Key Levels That We Mark On Our Charts:
At the start of every year the market is fresh, and traders are just coming back to it after the holidays. When you are ES 500 trading, you want to take a quick look at the previous year, and mark off some key points. Also, keep these levels updated throughout the year as they get pushed down and up through market fluctuation.
Previous year’s ES 500 trading close:
The ES 500 (S&P 500) is a bench mark for performance. Traders look at this as a consensus of how the market is going as a whole therefore there is motivation to push it upwards and downwards. The final price of the previous calendar year/open of the new year is the final result of this fight on price. We want to take this level, and mark it down right away. This level will act as a reference point for the rest of the year. It may act as support or resistance depending on if the market is bullish or bearish.
ES 500 trading high of the year:
The high of the year tells us a lot about the market. This is not only an indicator of strength, but an indicator of traders outlook on the market. When the bears are strong, they push this level up quite easily. When the market approaches the year’s high, it can often act as a level of resistance in the market. Especially when the year’s high has already been tested and re tested recently.
ES 500 trading low of the year:
Often we will find ourselves paying attention to the low of the year more than anything. This is the low point of strength in the market. Traders watch this level because a break of it will cause a new loss of faith in market strength.
Marking Off These Levels:
It’s important for us as traders to mark off these levels in the market because, as the price reaches them, they can offer resistance and support. Without having these levels marked, we would be blind to a situation of R&S ahead in the market trading.
Bruce Banks