E-mini S&P 500 Index (ES) Futures Technical Analysis – February 27, 2017 Forecast

March E-mini S&P 500 Index futures are trading lower after posting a new record high earlier in the session. This puts the index in a position to post a closing price reversal top. It may not be a sign that the market is getting ready to roll over to the downside, but it could mean that investors are squaring positions ahead of President Trump’s speech on Tuesday night.

Technical Analysis

The main trend is up according to the daily swing chart. We’ve had a higher-high. If we get a lower close then we could see the start of a 2 to 3 day correction.

The minor trend will turn down on a trade through 2349.50.

Forecast

Based the current price at 2363.75, the direction of the market today is likely to be determined by trader reaction to Friday’s close at 2365.00.

A sustained move over this level will signal the presence of buyers with today’s intraday high the first target. Overtaking this high could signal the return of momentum.

A sustained move under 2365.00 will indicate the presence of sellers. The first target is the short-term 50% level at 2359.75. This is followed by the short-term 50% level at 2359.75. If this fails as support then look for a possible move into the next angle at 2353.50. This is the last potential support angle before the 2349.50 main bottom.

Today, the index is going to continue to drive higher through 2365.00 or we’re going to produce a potentially bearish closing price reversal top. The tone of the market today will be determined by trader reaction to this level.