S&P 500 E-mini Futures Analysis: Key Price Levels for January 9, 2025

This article provides a focused analysis S&P 500 E-mini Futures (ES)highlighting key levels and zones to help traders navigate today’s market. Instructions include bullish and bearish thresholdsprofit taking objectives and orientation to the significance of these levels based on recent market behavior.

Current price on ES on the day of this analysis: 5943.5

The S&P 500 E-mini futures trade on 5943.5 at the time of this analysis, positioning the price near the key levels that will determine the direction of the market. The guidelines below outline the thresholds at which bullish or bearish scenarios gain traction, along with associated profit-taking levels. Currently, 5953 is likely a price magnet, very close to yesterday’s value area.

Bullish above 5968

Why bullish above 5968?

If the price moves above 5968signals bullish momentum for the following reasons:

• The price would go up above the VWAP level of five of the last seven trading days.
• It would be above yesterday’s area high (VAH).
• That would clean it up Point of Control (POC) from two trading days ago.

Profit taking levels for long positions:

If price sustains bullish momentum above 5968, traders can consider the following levels for partial or full profit taking:

1. 5985.50: Just below the January 7th VWAP.
2. 5994.25: Slightly below the VAH of yesterday and January 3rd.
3. 6011: Low Value Area (VAL) since January 6th.

Bearish below 5928

Why bearish below 5928?

If the price falls below 5928signals bearish momentum due to the following factors:

• The price would break below Area Value Low (VAL) in the last three trading days.
• It would also fall below the January 2nd VWAPkey support level.

Profit taking levels for short positions:

If price sustains bearish momentum below 5928, traders may consider these levels for partial or full profit taking:

1. 5921.50: Nearby level for initial profit taking.
2. 5901.75: A little beyond the psychological 5900 round number.
3. 5879: Slightly above VAL as of January 2nd.

Key terms and concepts for marketers

VWAP (Volume Weighted Average Price):

VWAP is a critical level for intraday and swing traders. It provides a volume weighted average of price, often acting as dynamic support or resistance. For more details on VWAP and how it can guide trading strategies, check out this educational resource.

Value Area, VAH, VAL and Point of Control (POC):

These terms come from market profile analysis, identifying the price zones where most trading activity took place.

• Value Area (VA): It represents the price range in which 70% of trades took place.
• VAH (Value Area High): The upper limit of the value range.
• VAL (low value area): Lower limit of the value range.
• POC (Point of Control): The price with the highest traffic.

To learn more about these concepts, visit this guide.

Conclusion

Today’s S&P 500 Futures E-mini chart highlights key levels for both bullish and bearish scenarios:

• Above 5968: Bulls take control, with targets on 5985.50, 5994.25and 6011.
• Below 5928: Bears take control, target 5921.50, 5901.75and 5879.

These levels provide meaningful junctions for traders to evaluate price action and consider potential trades between reward and risk based on their individual strategies. As always, trade responsibly and consider key levels in your decision making process.

Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always trade at your own risk. Visit ForexLive.com for additional reviews.