Throughout the month of September, the US Stockmarket has been bullish as reflected by the S&P500 continually staying above it’s monthly Volume Weighted Average Price (VWAP). In the chart below this is illustrated by the market remaining above the pink line (monthly VWAP). The chart is for the S&P500 futures contract ESZ9.
As can be seen on the chart today we are approaching the pink VWAP level, which is around $2980 at the time of writing.
Today’s level is considering this VWAP ass potential support. Hence there is potential to buy close to that pink line, with a relatively tight stop, and the potential for a trailing target, based on how the market reacts to that support.