March E-mini S&P 500 Index futures are trading nearly flat on Wednesday as investors continue to digest yesterday’s hawkish commentary from Fed Chair Jerome Powell and expectations for higher interest rates throughout the year.
Daily Technical Analysis
The main trend is up according to the daily swing chart, but yesterday’s potentially bearish closing price reversal top may have slowed down the upside momentum.
A trade through 2789.75 will negate the closing price reversal top and signal a resumption of the uptrend. This move could create the upside momentum needed to challenge the all-time high at 2878.50.
A move through 2682.00 will change the main trend to down.
The main range is 2878.50 to 2529.00. Its retracement zone is 2703.75 to 2745.00. This zone is controlling the longer-term direction of the index.
The short-term range is 2682.00 to 2789.75. Its retracement zone at 2735.00 to 2723.00 is inside the main retracement zone.
The intermediate range is 2529.00 to 2789.75. Its retracement zone is 2659.25 to 2628.50. If the trend changes to down on a move through 2682.00 then this zone could be tested.
Daily Technical Forecast
Based on the today’s price action, the direction of the index into the close is likely to be determined by trader reaction to the short-term uptrending Gann angle at 2746.00.
A sustained move over 2746.00 will indicate the presence of buyers. This could drive the index into the next uptrending Gann angle at 2769.00. Overtaking this angle will indicate the buying is getting stronger.
If upside momentum increases then look for buyers to go after 2789.75 and a long-term downtrending Gann angle at 2794.50.
A sustained move under 2746.00 will signal the presence of sellers. Look for a labored break on a sustained move under this angle. Initial support could come in at 2745.00 and 2735.00.
Taking out 2735.00 could extend the selling into 2723.00 then an uptrending Gann angle at 2714.00.
Additional support is clustered at 2703.75 and 2698.00.
The trigger point for an acceleration to the downside is 2698.00.