March E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The market is being boosted by the Fed’s dovish tone in its monetary policy statement. Weakness in banking and energy stocks could limit gains.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, the market is in the window of time for a potentially bearish closing price reversal top.
A trade through 2675.50 will signal a resumption of the uptrend. A move through 2622.50 will change the main trend to down.
The short-term range is 2622.50 to 2675.50. Its retracement zone at 2649.00 to 2642.75 is the primary downside target. An uptrending Gann angle passes through this zone at 2646.50, making it a valid downside target also. Since the main trend is up, a test of this area could draw the attention of buyers.
Daily Technical Forecast
Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the steep uptrending Gann angle at 2670.50.
A sustained move over 2670.50 will indicate the presence of buyers. This could trigger a surge to the upside with 2675.50 the first target.
A sustained move under 2670.50 will signal the presence of sellers. The daily chart is wide open to the downside with the key targets coming in at 2649.00, 2646.50 and 2642.75.