E-mini S&P 500 Index (ES) Futures Technical Analysis – February 17, 2017 Forecast

March E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Yesterday, the index closed lower, breaking its winning streak. This could be an indication of a tired market, but not one that is necessarily in a position to change the trend to down.

Technical Analysis

The main trend is up according to the daily swing chart. The market is trading inside Wednesday’s range for a second day. This indicates investor indecision and impending volatility. The index is also in the window of time for a potentially bearish closing price reversal top. This will take place following a higher-high and a lower close.

If 2262.25 to 2351.50 becomes the new main range then its retracement zone at 2307.00 to 2296.25 will become the new primary downside target.

Forecast

Based on the current price at 2304.75, the nearest downside target is an uptrending angle at 2331.50. Since the main trend is up, watch for a technical bounce on the first test of this angle. If it fails as support then we could see an acceleration into the support cluster at 2315.50 o 2314.25.

The nearest upside target is the high at 2351.50. This is followed by an uptrending angle at 2363.50. Overtaking this angle will put the index in an extremely bullish position.