E-mini S&P 500 Index (ES) Futures Technical Analysis – February 21, 2018 Forecast

March E-mini S&P 500 Index futures are trading flat shortly before the cash market opening. We’re not looking for much movement in the index leading up to the release of the Fed minutes at 1900 GMT. However, we should see some volatile price action afterwards especially if the Fed delivers a hawkish message.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the minor trend is up. A trade through 2754.75 will indicate that momentum is trending higher. It will also reaffirm the minor uptrend.

The main range is 2878.50 to 2529.00. The index is currently testing its retracement zone at 2703.75 to 2745.00. Trader reaction to this zone is likely going to determine the near-term direction of the index.

The short-term range is 2529.00 to 2754.75. If sellers take control then look for a move into its retracement zone at 2641.75 to 2615.25.

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the main 50% level at 2703.75.

A sustained move over 2703.75 will indicate the presence of buyers. This could trigger a strong rally into 2745.00, followed closely by a downtrending Gann angle at 2750.50.

The daily chart indicates there is plenty of room to the upside over 2754.75 so don’t be surprised by an acceleration. The next major target angle comes in at 2814.50.

A sustained move under 2703.75 will signal the presence of sellers. This is followed closely by an uptrending Gann angle at 2689.00. We could see a technical bounce on the first test of this angle.

The angle is also the trigger point for an acceleration to the downside with the next major targets a 50% level at 2641.75, followed by a loose cluster of numbers at 2622.50, 2615.25 and 2609.00.

Basically, we’re looking for an upside bias to develop on a sustained move over 2750.50 and for a downside bias to develop on a sustained move under 2689.00.