E-mini S&P 500 Index (ES) Futures Technical Analysis – February 22, 2018 Forecast

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. Sellers followed through to the downside earlier in the session after yesterday’s massive intraday reversal. However, the move didn’t last very long and the selling stopped. This encouraged profit-taking while attracting some speculative buying.

Daily Swing Chart 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 is 2703.75 to 2745.00. This zone is controlling the short-term direction of the market. Earlier in the week, it provided resistance. Currently, the index is testing the lower or 50% level at 2703.75.

The new 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 Swing Chart Technical Forecast

Based on the early trade, the direction of the index the rest of the session will be determined by trader reaction to the 50% level at 2703.75.

A sustained move over 2703.75 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the Fibonacci level at 2745.00. This is followed by the main top at 2754.75.

Taking out 2754.75 will change the main trend to up. This could trigger an acceleration to the upside.

A sustained move under 2703.75 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside under today’s intraday low at 2682.00. If this move triggers an acceleration to the downside then sellers will set their sights on 2641.75 to 2615.25.