E-mini S&P 500 Index (ES) Futures Technical Analysis – February 27, 2019 Forecast

March E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. External events are weighing on investor sentiment. Traders are digesting the impact of the news that Pakistan shot down two Indian jets and carried out air strikes in Kashmir. Uncertainty over the outcome of a summit between President Donald Trump and North Korean leader Kim Jong Un is also capping gains. Additionally, there has been no fresh news this week regarding U.S.-China trade relations. Fed Chair Jerome Powell is also expected to continue his testimony before Congress.

At 14:19 GMT, March E-mini S&P 500 Index futures are trading 2786.25, down 5.25 or -0.19%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2814.00 will signal a resumption of the uptrend. The main trend will change to down on a trade through 2729.00.

The minor trend is also up. A move through 2764.25 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 2729.00 to 2814.00. Its retracement zone at 2771.50 to 2761.50 is the primary downside target. Since the main trend is up, look for buyers to show up on the first test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 2785.00.

Bullish Scenario

A sustained move over 2785.00 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into the downtrending Gann angle at 2798.00. Overtaking this angle could drive the index into a pair of downtrending Gann angles at 2806.00 and 2810.00. The latter is the last potential resistance angle before the 2814.00 main top.

Bearish Scenario

A sustained move under 2785.00 will signal the presence of sellers. The next target is an uptrending Gann angle at 2776.75. If this fails then look for a break into the retracement zone at 2771.50 to 2761.50. This is followed by an uptrending Gann angle at 2757.00. This is the last major support angle before the 2729.00 main bottom.