S&P 500 Futures ā Price Location and Liquidity Map
Letās start this week by looking at the futures market.
But before anything else, I always like to remind traders of two key questions:
– Where is price?
– Where is liquidity?
If you can answer those two questions, you already understand a large part of what the market is doing.
Higher Timeframe Context
On the higher timeframes, the S&P 500 is still in a long-term uptrend, which is typical ā markets are designed to move higher over time.
However, what we may be seeing now is a larger pullback within that broader uptrend.
At the moment, price is moving toward the Golden Zone of the last bullish impulse, which is a natural area where buyers may step in.
Daily Timeframe
On the daily timeframe, price is clearly trading inside a major consolidation range between 7090 and 6351.
Price is currently below the Daily 200 EMA
Last week, price found buy-side liquidity, which caused a bounce. That bounce is being supported by a large FVG left below and a Golden Zone that price has not yet shown strong interest in revisiting.
This suggests that buyers are still present, at least for now.
4H Structure
At the moment:
– Price opened with a bearish gap.
– Price rejected the open.
– Price is currently being contained by an FVG that aligns with the 4H 50 EMA.
– We can clearly see a compression structure forming.
This means price is likely accumulating before moving in one direction or the other.
Compression ā Expansion.
This Week
This week, the question is not just technical ā itās also macro.
Geopolitical events often act as the fuel that moves price toward liquidity.
So for now, we continue to observe:
– Where price is.
– Where liquidity is.
– And which side of the compression breaks.
As always:
Reaction > Prediction.