E-mini S&P 500 Index (ES) Futures Technical Analysis – 3192.00 May Be Trigger Point for Acceleration to Downside

March E-mini S&P 500 Index futures are trading nearly flat shortly before the cash market opening. Helping to hold the benchmark index in a range are renewed concerns over a no-deal Brexit and lingering uncertainty over the details of the U.S.-China trade deal. N

Strong U.S. economic data on Tuesday helped underpin the index, but today, prices are being pressured after FedEx shares dropped more than 7% on disappointing quarterly earnings.

At 14:11 GMT, March E-mini S&P 500 Index futures are trading 3197.50, up 2.00 or +0.06%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, Tuesday’s closing price reversal top may have slowed down the upside momentum.

A trade through 3203.50 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 3071.00 will change the main trend to down. However, more importantly today, a trade through 3192.00 will confirm the closing price reversal top and the shift in momentum to down. This won’t change the trend to down, but it could trigger the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 3118.25 will change the minor trend to down. This will also confirm the shift in momentum.

The minor range is 3118.25 to 3203.50. Its retracement zone at 3160.75 to 3150.75 is the first downside target.

The main range is 3071.00 to 3203.50. Its retracement zone at 3137.25 to 3121.50 is the second downside target.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to yesterday’s low at 3192.00.

Bullish Scenario

A sustained move over 3192.00 will indicate the presence of buyers. The first upside target is 3203.50. Taking out this level will signal a resumption of the uptrend. If this move creates enough upside momentum then look for a test of the uptrending Gann angle at 3247.00. Overtaking 3247.00 will put the index in an extremely bullish position.

Bearish Scenario

A sustained move under 3192.00 will signal the presence of sellers. The daily chart is wide open under this level so don’t be surprised by an acceleration to the downside.

The first target is an uptrending Gann angle at 3166.25. This is followed by a potential support cluster at 3160.75 to 3159.00. Since the main trend is up, buyers are likely to come in on a test of these support levels.