E-mini S&P 500 Index (ES) Futures Technical Analysis – February 5, 2018 Forecast

Based on the early trade, the direction of the index the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 2748.25.
James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

March E-mini S&P 500 Index futures are trading lower during the pre-market session. The move is a continuation of last week’s spectacular sell-off. We’re looking at the weekly chart today.

Last week, the index formed a potentially bearish weekly closing price reversal top. The chart pattern was confirmed earlier today. This could signal the start of a two to three week correction.

Weekly March E-mini S&P 500 Index

Daily/Weekly Technical Analysis

The main trend is up according to the weekly swing chart, however, momentum has shifted to the downside.

A trade through 2878.50 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 2667.75 will change the minor trend to down. This is followed by another minor bottom at 2556.50.

The first minor range is 2667.75 to 2878.50. Its retracement zone is 2773.25 to 2748.25. The index is currently trading under this zone.

The second minor range is 2556.50 to 2878.50. Its retracement zone at 2717.50 to 2679.50 is the next downside target.

The main range is 2415.50 to 2878.50. Its retracement zone is 2647.00 to 2592.25. Since the trend is up, I expect buyers to show up if this zone is tested.

Daily/Weekly Technical Forecast

Based on the early trade, the direction of the index the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 2748.25.

A sustained move under 2748.25 will indicate the presence of sellers. This could generate the downside momentum needed to challenge the 50% level at 2717.50, followed by the Fibonacci level at 2679.50.

The Fib level at 2679.50 is the trigger point for an acceleration into 2647.50 to 2592.25.

Overtaking 2748.25 will signal the presence of buyers. This could lead to a move into the 50% level at 2773.25. This price is the trigger point for a possible surge into a pair of Gann angles at 2799.50 and 2814.50.

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