E-mini S&P 500 Index (ES) Futures Technical Analysis – Bearish but Momentum Turns Higher Over 2884.75

March E-mini S&P 500 Index futures opened sharply lower on Wednesday. Optimism over potential fiscal stimulus from Washington drove prices higher on Tuesday, but stock retreated overnight after the Trump administration failed to deliver on its promises. Investors now have doubts in President Trump’s ability to rescue the economy from the devastating effects of the coronavirus outbreak.

At 13:34 GMT, March E-mini S&P 500 Index futures are trading at 2814.00, down 51.75 or -1.81%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, yesterday’s closing price reversal bottom may be an early sign that momentum is getting ready to shift to the upside.

The main trend will change to up on a trade through 3137.00.

A trade through 2884.75 will confirm the closing price reversal bottom. A move through 2695.25 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The major range is 2356.00 to 3397.50. Its retracement zone at 2876.75 to 2753.75 is controlling the long-term direction of the index. The index is currently trading inside this zone.

The short-term range is 3137.00 to 2695.25. Its retracement zone at 2916.25 to 2968.25 is the next upside target. Since the trend is down, sellers could come in on the first test of this zone. Overtaking it could launch a strong rally.

Daily Technical Forecast

Based on the early price action and the current price at 2814.00, the direction of the March E-mini S&P 500 Index the rest of the session on Wednesday will be determined by trader reaction to the Fibonacci level at 2753.75.

Bearish Scenario

A sustained move under 2753.75 will indicate the presence of sellers. This could trigger a break into yesterday’s low at 2695.25 and an uptrending Gann angle at 2661.25.

The angle at 2661.25 is a potential trigger point for an acceleration to the downside with the next target angles coming in at 2508.25 and 2429.75. The latter is the last potential support angle before the 2356.00 main bottom.

Bullish Scenario

A sustained move over 2753.75 will signal the presence of buyers. The first upside target is the major 50% level at 2876.75. This is followed by a series of potential resistance levels including a short-term 50% level at 2916.25, a major downtrending Gann angle at 2949.50 and a resistance cluster at 2963.00 to 2968.25.

The trigger point for an acceleration to the upside is 2968.25.

Side Notes

Basically, look for strength on a sustained move over 2876.75 and weakness under 2753.75.