Tue ES MES Micros Technical Analysis 01/07/2025

Preparing ES Emini & MES Micros Traders
For Our Emini and Micros Futures Trading Room



On Tuesday, January 7th, ES/MES futures traders turned their attention to trend analysis, trade locations, and range dynamics. A morning briefing inspired by Matthew 11:28 urged participants to find solace amid market challenges. Key data points, including ISM Services PMI and JOLTS reports, are set to drive today’s action. The 200-point market squeeze placed the ES chart in the middle of a high timeframe range, with critical levels identified at 16 (bull-bear line) and 78 (key resistance). Traders are advised to navigate the "slop and chop" conditions carefully, staying prepared for shifts in market momentum. RESOURCES:
            
▶️ Free "Futures Foundations Course"             
▶️ Membership Options      
▶️Youtube Community Updates             
▶️ Website for ES MES Trading Room (Back Up)


TRANSCRIPT:

Welcome ES/MES Futures Traders

Good Morning and Overview

Happy Tuesday, January 7th! Today, we’ll focus on trend, trade locations, and ranges on the ES chart. Let’s start with an inspirational quote for the week:

"Come to me, all you who are weary and burdened, and I will give you rest." — Matthew 11:28

This verse beautifully reminds us that every worry and burden in life can feel like rocks in a backpack, getting heavier over time. By turning to Jesus, we can find peace and rest. It’s a perfect message to carry into the trading week.

Morning Briefing

Welcome to the AM Briefing brought to you by MicrosTrader.com, where together, we trade better. We are a dedicated ES/MES futures trade room community.

Tip of the Day

Identify Fair Value Gaps

When trading, pay attention to whether the market is leaving fair value gap candles. Without fair value gaps, price action often becomes messy and challenging to trade. Yesterday, we observed difficult conditions in the morning with little follow-through. However, the afternoon session showed better opportunities with clear fair value gap candles, making the short side easier to trade.

News Drivers

  • Today’s Schedule:
    • I’ll go live on YouTube 10-15 minutes before the market opens for a quick recap of any updates.
    • Key Economic Data:
      • 30 minutes post-open: ISM Services PMI and JOLTS job openings.
    • Thursday: Markets will be closed in honor of Jimmy Carter.
    • Weather Notice: In my area, heavy snow is expected. Power outages may disrupt our Thursday and Friday sessions.

ES Chart Analysis: Where Are We?

After a 200-point squeeze, we’re back in the middle of a high timeframe range. Yesterday, we anticipated price targeting between 70 and 79, which it did before pulling back. This area was not an edge, but it’s essential to monitor if we chop in the middle or break below 16 (the bull-bear line) or above 78.

Key Takeaways:

  1. Key Levels:
    • 16: Bull-Bear Line
    • 78: Significant resistance
  2. Scenarios:
    • If price moves under 78, we might see a strong downside move.
    • If price moves over 44, potential long opportunities arise.

Yesterday's Review

Yesterday’s price action was messy early on, with no fair value gaps and a lack of clear direction. Later in the day, the action became more structured, offering better trading opportunities. The three-minute chart highlighted these changes, particularly the emergence of fair value gaps that provided more predictable moves.

Indices

All major indices are in the lower distribution of yesterday’s range, leaning slightly bullish. However, there’s no conviction or clear trend yet, leading to what will likely be a complex slop and chop day.

Bull-Bear Scorecard

  • Overnight Trendline: Flat
  • Session Stacking: Slightly bullish
  • VWAP: Marginally bullish
  • Overnight Halfback: Barely above
  • Yesterday’s Range: Slightly bullish

The bulls hold a slim advantage, but the market could quickly turn if momentum shifts.

Final Thoughts

Stay green and trade carefully in these conditions. Remember, we’re live on YouTube before the market opens to review price action and discuss trade setups. After two days of short-covering rallies, anticipate some chop.

To learn more about our trading group, visit MicrosTrader.com.

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