E-mini S&P 500 Index (ES) Futures Technical Analysis – Could Find Support at 2674.75 to 2669.50

March E-mini S&P 500 Index futures hit a record high early in the week then drifted sideways to lower the rest of the week as investors took to the sidelines ahead of the long holiday week-end.  The index was supported by the passage of the largest U.S. tax reform bill in 30 years.

March E-mini S&P 500 Index futures settled at 2686.00, down 1.75 or -0.07%.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. A trade through 2698.00 will signal a resumption of the uptrend. The main trend will change to down on a trade through 2651.75.

The short-term range is 2651.75 to 2698.00. Its retracement zone at 2674.75 to 2669.50 is the initial downside target. Since the main trend is up, buyers may show up on the first test of this zone.

The intermediate range is 2622.50 to 2698.00. If 2669.50 fails as support then look for the selling to extend into its retracement zone at 2660.25 to 2651.25.

The main range is 2556.50 to 2698.00. If the main trend changes to down on the trade through 2651.75 and the selling extends through 2651.25 then we could see an acceleration into its retracement zone at 2627.25 to 2610.50. Inside this zone is another main bottom at 2622.50.

Daily Swing Chart Forecast

Based on Friday’s close at 2686.00, the direction of the index on Tuesday is likely to be determined by trader reaction to the short-term retracement zone at 2674.75 to 2669.50.

Taking out 2698.00 will produce a new record high. However, due to the prolonged move up in terms of price and time, buyers still have to watch for a potentially bearish closing price reversal top.