E-mini S&P 500 Index (ES) Futures Technical Analysis – February 23, 2017 Forecast

March E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The index is trading inside Tuesday’s 2346.00 to 2365.00 trading range for a second day, indicating investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2365.00 will signal a resumption of the uptrend. The market is far from turning the main trend to down, but we’re still in the window of time for a potentially bearish closing price reversal top. We’ll remain in the window of time until we make a new swing pattern. Therefore, continue to be careful buying strength because of the possibility of a higher-high, lower-close chart pattern.

Forecast

If buyers can take out 2365.00 with conviction then look for the rally to possible extend into the uptrending angle at 2375.50. Overtaking this angle will put the index in an extremely bullish position.

If buyers fail to take out 2365.00, or if an intraday closing price reversal top starts to form then start preparing for a sell-off. The daily chart indicates there is room to the downside with the next major support angle coming in at 2337.50.

Since we are in a momentum driven market, the direction of the index today will depend on how investors reaction to 2365.00. Buyers are either going to drive the index through this level with conviction, or sellers are going to take control, at least temporarily.