Chart of the Day: S&P 500 short-term setup (5/26/15)

This post is the first in a series I will be extending for a week or two, focusing on short-term and intraday trading. Each day, I will be publishing a chart of the day that focuses on the best short-term ideas and setups I see in the US stock index futures. (I will use ES, but these ideas are equally applicable to YM, NQ, etc.) I’ll usually post this right around the US market open (9:30 EDT), but today’s is a bit late to start!

I will also write a series of articles looking at some of the short-term tendencies in markets, as well as some posts that look at the psychological challenges of short-term trading. Much of my work and writing has focused on swing trading, which reflects my personality and a conscious decision to shift to longer timeframes–I spent many years daytrading stocks, stock index futures, currency futures, so, in some ways, these next few weeks will feel like coming full circle for me! I’m excited to share these ideas and perspectives with you.

S&P 500 short-term setup for 5/26/15
S&P 500 short-term setup for 5/26/15
  • Probabilities favor an upside break, but any break (up or down) could see continuation. Do not fade a breakout of the key 2120 – 2132 range.
  • Especially powerful could be a gap opening (following the US Holiday) that does not reverse much in the first hour of trading. Setup from a sharp opening shock is for a clean trend day.
  • Expect afternoon continuation of any early morning trend.


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.