E-mini S&P 500 Index (ES) Futures Technical Analysis – December 21, 2017 Forecast

March E-mini S&P 500 Index futures are trading higher shortly after the opening. The market is trading inside yesterday’s range on low volume. This indicates investor indecision and impending volatility.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, three days of sideways trading suggests upside momentum may be slowing.

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 2675.00 to 2669.50 is the primary downside target. An uptrending Gann angle passes through this zone at 2671.75, making it a valid downside target also. Since the main trend is up, buyers may show up on the first test of this area.

Daily Technical Forecast

Based on the early trade, the direction of the index the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at 2691.75.

Overtaking 2691.75 and sustaining the move will indicate the presence of buyers. If this is done with rising volume then we could see a drive into the all-time high at 2698.00, followed by another steep uptrending Gann angle at 2710.50. Overtaking this angle will put the index in a bullish position.

The inability to overcome 2691.75 will not be a bearish sign, but it will signal the presence of sellers. This could trigger a move into 2675.00, followed by 2671.75 then 2669.50. Since the main trend is up, buyers may show up on a test of this area.

Volume appears to be below average so be careful buying strength or selling weakness. They tend to need rising volume to work.