E-mini S&P 500 Index (ES) Futures Technical Analysis – December 20, 2017 Forecast

March E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. Volume is expected to be below average as investors prepare for the long holiday weekend. The tax reform bill looks like a done deal although it may not be signed into law until after January 1. The market could face some headwinds due to concerns over a government shutdown and funding.

Daily Technical 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 trend will change to down on a move through 2651.75.

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

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the steep, short-term uptrending Gann angle at 2683.75.

A sustained move over 2683.75 will indicate the presence of buyers. This could generate the upside momentum needed to challenge a longer-term uptrending Gann angle at 2702.50. Overcoming this angle will put the index in a bullish position with the next target angle coming in at 2715.75.

A sustained move under 2683.75 will signal the presence of sellers. This could trigger an acceleration into 2674.75. This is followed by 2669.50 and 2661.75.