E-mini S&P 500 Index (ES) Futures Technical Analysis – February 10, 2016 Forecast

March E-mini S&P 500 Index futures posted an inside day on Tuesday as many investors took to the sidelines ahead of Fed Chair Janet Yellen’s testimony before Congress today. The chart pattern suggests investor indecision and impending volatility.

Technically, the main trend is down according to the daily swing chart. A trade through 1804.25 will reaffirm the downtrend. A move through 1940.00 will turn the main trend to up.

The main range is 2075.00 to 1804.25. Its retracement zone at 1939.75 to 1971.50 is a major upside target.

The short-term range is 1804.25 to 1940.00. Its 50% level or pivot is 1872.25. This level is controlling the short-term direction of the market.

Based on Tuesday’s close at 1848.25 and the early price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 1864.25.

A sustained move over 1864.25 will indicate the presence of buyers. This could trigger a fast move into the pivot at 1872.25. This is followed closely by a downtrending angle at 1884.00.

The angle at 1884.00 is the trigger point for an acceleration to the upside with the next major target another downtrending angle at 1912.00.

The inability to overcome 1864.25 will signal the presence of sellers. This could create enough downside momentum to trigger a break into the next uptrending angle at 1834.25. This is followed by Monday’s low at 1821.75 and another uptrending angle at 1819.25. This is the last potential support angle before the 1804.25 main bottom.

Watch the price action and order flow on a test of 1864.25 today. Trader reaction to this angle will tell us if the bulls or the bears are in control.