3 Key Support Levels on S&P 500 Futures (ES): Day Trading With Volume Profile

Hello everyone, it’s Dale here with new day trading analysis. Today, I’d like to talk about the ES, which represents futures for the Standard and Poor’s 500 Index. What you see here is the ES 30-minute chart on the NinjaTrader 8 platform, featuring my custom-made Volume Profile and VWAP indicators.

As you can see, following the elections, the ES has been moving sharply upward in a strong uptrend, which I predicted in one of my previous videos. This trend is also supported by the fundamentals, so due to this strong uptrend, I’m focusing solely on trading long positions on the ES. My focus is on identifying significant high-volume zones to trade from. Currently, there are three key zones here, here, and here, each representing strong levels to trade from if there are pullbacks to these areas.

Let’s start with the first level. I’ll mark it here. The first level is around 5937. This support zone is based on substantial volume, which accumulated here as the price pushed upward. It appears that strong buyers were adding significantly to their long positions in this area. In addition to this heavy volume zone, the first deviation of the weekly VWAP is close to this area, creating a powerful combo that further strengthens this level. This makes it a strong support zone, so if the price makes a pullback, it would be an excellent spot to enter a long trade, as buyers from this area should defend it and push the price upward again.

Now, let’s discuss this second high-volume zone. This support level is at 5887.5, and it’s based on two factors. First, there’s the volume cluster created within the uptrend. Second, the price has reacted to this level in the past. This reaction signifies that it was previously a resistance level, which has now turned into support after the price moved past it. So we have both a price action setup and a Volume Profile setup, both indicating that this is a strong support level. If there’s a pullback to this level, a positive price reaction is likely.

The third long level is similar. It’s located here at 5804. As you can see, heavy volumes formed here, suggesting that strong buyers added to their long positions in this area. This setup also aligns with previous price action, as the price reacted here in the past, marking it as a former resistance level. Incidentally, I traded a short position from this level in the past, as it presented a similar setup but in a downtrend, forming a volume cluster within the downtrend. Once the price broke through this resistance, it turned into a new support level. This combination of price action and Volume Profile setups highlights the strength of this level.

The ideal scenario would be a pullback to the first support with a positive reaction, followed by pullbacks and reactions at the second and third support levels.

When trading this Volume Profile setup, it’s essential to use the flexible Volume Profile tool, allowing you to target specific areas. In this case, focus on the uptrend zone to identify these high-volume areas.

If you’re interested in learning more about Volume Profile trading, head over to my website, Trader-Dale.com. By clicking the “Trading Course and Tools” button, you’ll find a variety of trading education materials and custom-made indicators. Here, you’ll find the Volume Profile pack, focused on Volume Profile trading, and below that, the Order Flow pack, which emphasizes day trading with Order Flow. Both packs are available at a significant discount if purchased together.

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