E-mini S&P 500 Index (ES) Futures Technical Analysis – February 20, 2018 Forecast

March E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Investors are reacting to rising interest rates and disappointing earnings from Walmart. We could also be seeing some position-squaring ahead of Wednesday’s release of the January FOMC meeting minutes.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2754.75 will change the main trend to up.

The main range is 2878.50 to 2529.00. Its retracement zone at 2703.75 to 2745.00 is currently being tested. This zone is controlling the near-term direction of the index.

The short-term range is 2529.00 to 2754.75. If the selling pressure continues then its retracement zone at 2641.75 to 2615.25 will become the primary downside target.

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 50% level at 2703.75.

Holding above 2703.75 will signal the presence of buyers. If this move creates enough upside momentum then look for a rally into 2745.00, followed by a downtrending Gann angle at 2750.50. This is followed by 2754.75.

The trigger point for an acceleration to the upside is 2754.75. Taking out this level with strong buying volume could trigger a surge into the next downtrending Gann angle at 2814.50.

A sustained move under 2703.75 will indicate the presence of sellers. This could lead to a quick break into a steep uptrending Gann angle at 2689.00.

If 2689.00 fails as support then look out to the downside. Heavy volume on a break through this angle could trigger an acceleration into at least 2641.75.

Basically, we’re looking for a strong upside bias on a sustained move over 2750.50. A downside bias is likely to develop on a sustained move under 2689.00.