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

March E-mini S&P 500 Index futures are trading flat shortly ahead of the cash market opening. The major influence on the index today could be earnings reports, but investors are also watching the presidential election polls in France, U.S. economic news and Fed speaker comments and for any news from President Trump regarding his economic policy plans.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2356.75 will signal a resumption of the uptrend. The index is in no position to turn the main trend to down, but we’re still in the window of time for a closing price reversal top.

Once the index crosses 2356.75 then yesterday’s close at 2352.75 will become the most important intraday support. A close below this level will form the reversal top.

Forecast

The daily chart pattern with the Gann angles as our guide, suggests we should start preparing for excessive volatility. Taking out 2356.75, for example, will be a sign of increased buying. This could lead to increased volatility. The next Gann target is an uptrending angle at 2371.50.

On the downside, the market is vulnerable to a break into the uptrending Gann angle support at 2335.50.

Today is a tough call because the day will be controlled by momentum and volatility and they are hard to predict. All we have are our wide targets so the emphasis will be on the chart pattern and the possibility of a closing price reversal top.