E-mini S&P 500 Index (ES) Futures Technical Analysis – February 27, 2018 Forecast

March E-mini S&P 500 Index futures are trading slightly higher shortly after the cash market opening. In prepared remarks, new Federal Reserve Chair Jerome Powell said that the central bank will continue to raise rates despite recent market volatility. This seems to soften the bullish tone earlier in the session, but is not necessarily a game-changing comment.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The swing chart turned up on Monday when buyers took out 2754.75. The new main bottom is 2682.00. A trade through this level will change the main trend to down.

The index is also trading on the strong side of the major retracement zone at 2745.00 to 2703.75. This zone is new support. This area is also controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early trade, the first upside target is a downtrending Gann angle at 2798.50. Overtaking this angle will indicate the buying is getting stronger. This could trigger an acceleration into the next downtrending Gann angle at 2838.50. This is the last potential resistance angle before the 2878.50 main top.

On the downside, the first target angle comes in at 2753.00. Since the main trend is up, buyers may show up on the first test of this angle.

If it fails then look for the selling to extend into 2745.00, followed by 2730.00. The daily chart begins to open up under 2730.00 with the next targets 2706.00, 2703.75 and 2694.00. The latter is the last potential support angle before the 2682.00 main bottom.