E-mini S&P 500 Index (ES) Futures Technical Analysis – February 8, 2018 Forecast

March E-mini S&P 500 Index futures are trading slightly better shortly before the cash market opening. Volatility was relatively low during the pre-market session, but traders are still nervous about the return of volatile conditions with Treasury yields pushing weekly highs.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Momentum has been trying to shift to the upside since the closing price reversal bottom on February 6.

A trade through 2726.75 will change the minor trend to up and signal a shift in momentum to up.

The main range is 2878.50 to 2529.00. Its retracement zone at 2703.75 to 2745.00 is the major upside target. This zone stopped the rally on Wednesday at 2726.75.

The short-term range is 2529.00 to 2726.75. Its retracement zone is 2627.75 to 2604.50. Holding this area will be a sign that investors are trying to form a secondary higher bottom.

Daily Technical Forecast

Based on the early trade and yesterday’s price action, the key level to watch today is 2703.75.

A sustained move over 2703.75 will signal the presence of buyers. This could generate the momentum needed to overtake yesterday’s high at 2726.75. This is followed closely by a Fib level at 2745.00 and a downtrending Gann angle at 2750.50.

Since the main trend is down, we could see sellers come in at any of these levels, however, if buyers can take out 2750.50 with high volume then we could see an acceleration to the upside with a downtrending Gann angle at 2814.50 the primary upside target.

A sustained move under 2703.75 will indicate the presence of sellers. This could drive the index into a series of levels at 2627.75, 2622.50 and 2604.50.

If 2604.50 fails then don’t be surprised by an acceleration into 2529.00.

Trader indecision could hold prices inside the pair of 50% levels at 2703.75 and 2627.75.